Exhibit 99.1
| | | | |
| Contact: | | Stacie Frank | | FOR IMMEDIATE RELEASE |
| | Investor Relations | | |
| | 312-394-3094 | | |
| | |
| | Kathleen Cantillon | | |
| | Corporate Communications | | |
| | 312-394-7417 | | |
Exelon Announces Fourth Quarter and Full Year 2010 Results;
Introduces Guidance Range for Full Year 2011 Earnings
Company projects 2011 operating earnings of $3.90 to $4.20 per share.
CHICAGO(January 26, 2011) – Exelon Corporation (NYSE: EXC) announced fourth quarter and full year 2010 consolidated earnings as follows:
Exelon Consolidated Earnings (unaudited)
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| | | Full Year | | | Fourth Quarter | |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 | |
Adjusted (non-GAAP) Operating Results: | | | | | | | | | | | | | | | | |
Net Income ($ millions) | | $ | 2,689 | | | $ | 2,723 | | | $ | 631 | | | $ | 610 | |
Diluted Earnings per Share | | $ | 4.06 | | | $ | 4.12 | | | $ | 0.96 | | | $ | 0.92 | |
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GAAP Results: | | | | | | | | | | | | | | | | |
Net Income ($ millions) | | $ | 2,563 | | | $ | 2,707 | | | $ | 524 | | | $ | 581 | |
Diluted Earnings per Share | | $ | 3.87 | | | $ | 4.09 | | | $ | 0.79 | | | $ | 0.88 | |
| | | | | | | | | | | | | | | | |
“We delivered another exceptional year of financial and operating performance in 2010,” said John W. Rowe, chairman and chief executive officer. “We accomplished this with a keen focus on controlling operating and maintenance expenses across our businesses. At the same time, Exelon Generation attained its eighth consecutive year of nuclear fleet capacity factors that exceeded 93 percent, and ComEd and PECO demonstrated strong service reliability despite severe storms.”
Rowe added, “In 2011, Pennsylvania has fully transitioned to a competitive energy market, and along with our continued diligent focus on cost control and financial discipline, we are introducing full year operating earnings guidance of $3.90 to $4.20 per share.”
Fourth Quarter Operating Results
As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings increased to $0.96 per share in the fourth quarter of 2010 from $0.92 per share in the fourth quarter of 2009, primarily due to:
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| | • | | The impact at Exelon Generation Company, LLC (Generation) of favorable capacity pricing related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC (PJM) market; |
| | • | | Increased nuclear output at Generation primarily reflecting the effect of fewer nuclear outage days in 2010; and |
| | • | | Decreased scheduled competitive transition charge (CTC) amortization expense at PECO Energy Company (PECO). |
Higher fourth quarter 2010 earnings were partially offset by:
| | • | | Unfavorable market/portfolio conditions and higher nuclear fuel costs at Generation; and |
| | • | | Increased depreciation expense across the operating companies largely due to ongoing capital expenditures. |
Adjusted (non-GAAP) operating earnings for the fourth quarter of 2010 do not include the following items (after tax) that were included in reported GAAP earnings:
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| | | (in millions) | | | (per diluted share) | |
Mark-to-market losses primarily from Generation’s economic hedging activities | | $ | (113 | ) | | $ | (0.17 | ) |
Unrealized gains related to nuclear decommissioning trust (NDT) fund investments to the extent not offset by contractual accounting | | $ | 26 | | | $ | 0.04 | |
Costs associated with the planned retirement of certain Generation fossil generating units | | $ | (17 | ) | | $ | (0.03 | ) |
Decrease in costs related to adjustments to asset retirement obligations of Commonwealth Edison Company (ComEd) and PECO | | $ | 7 | | | $ | 0.01 | |
External costs related to Exelon’s acquisition of John Deere Renewables, LLC (now known as Exelon Wind) | | $ | (6 | ) | | $ | (0.01 | ) |
Costs associated with the 2007 Illinois electric rate settlement agreement | | $ | (4 | ) | | $ | (0.01 | ) |
Adjusted (non-GAAP) operating earnings for the fourth quarter of 2009 did not include the following items (after tax) that were included in reported GAAP earnings:
| | | | | | | | |
| | | (in millions) | | | (per diluted share) | |
Costs associated with the planned retirement of certain Generation fossil generating units | | $ | (34 | ) | | $ | (0.05 | ) |
Mark-to-market gains primarily from Generation’s economic hedging activities | | $ | 26 | | | $ | 0.04 | |
Costs associated with the 2007 Illinois electric rate settlement agreement | | $ | (15 | ) | | $ | (0.02 | ) |
Costs associated with early debt retirement | | $ | (15 | ) | | $ | (0.02 | ) |
Unrealized gains related to NDT fund investments | | $ | 14 | | | $ | 0.02 | |
Charge associated with ComEd’s 2007 settlement agreement with the City of Chicago | | $ | (5 | ) | | $ | (0.01 | ) |
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2011 Earnings Outlook
Exelon introduced a guidance range for 2011 adjusted (non-GAAP) operating earnings of $3.90 to $4.20 per share. Operating earnings guidance is based on the assumption of normal weather.
The outlook for 2011 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:
| | • | | Mark-to-market adjustments from economic hedging activities |
| | • | | Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements |
| | • | | Significant impairments of assets, including goodwill |
| | • | | Changes in decommissioning obligation estimates |
| | • | | Costs associated with ComEd’s 2007 settlement with the City of Chicago |
| | • | | Financial impacts associated with the planned retirement of fossil generating units |
| | • | | Significant changes to GAAP |
Fourth Quarter and Recent Highlights
| | • | | Oyster Creek Nuclear Station Retirement: On December 8, 2010, Exelon announced that the company will operate the Oyster Creek Generating Station in New Jersey until 2019, after which the plant will retire. The 625-megawatt (MW) nuclear plant is federally licensed to operate until 2029. Oyster Creek faces a unique set of adverse economic factors and changing environmental regulations that make ending operations in 2019 the best option. Potential additional environmental compliance costs based on evolving water cooling regulatory requirements at both the federal and state government levels created significant regulatory and economic uncertainty. Due to Exelon’s decision to retire the plant early, the New Jersey Department of Environmental Protection will not require the company to install cooling towers at Oyster Creek. |
| | • | | John Deere Renewables (JDR) Acquisition:On December 9, 2010, Exelon completed its previously announced acquisition of JDR, a leading operator and developer of wind power, adding 735 MW of clean, renewable energy to Exelon’s generation portfolio. The acquisition of JDR marked Exelon’s entry into owning and operating wind projects. The 36 wind projects in eight states are now called Exelon Wind, a division of Exelon Power. The acquisition provides incremental earnings starting in 2012 and cash flows starting in 2013 and is a key part of Exelon 2020, the company’s business strategy to eliminate the equivalent of its 2001 carbon footprint by 2020. Exelon is now halfway to its goal and remains the least carbon-intensive of the large U.S. electric utilities. Approximately 75 percent of the Exelon Wind operating portfolio is already sold under long-term power purchase arrangements. In addition, Exelon has the opportunity to pursue approximately 1,400 MW of new wind projects that are in various stages of development, including 230 MW in advanced stages of development. |
| | • | | Nuclear Operations:Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 35,115 gigawatt-hours (GWh) in the fourth quarter of 2010, compared with 33,609 GWh in the fourth quarter of 2009. The Exelon-operated nuclear plants achieved a 93.1 percent capacity factor for the fourth quarter of 2010 compared with 89.8 percent for the fourth quarter of 2009. The Exelon-operated nuclear plants completed four |
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| | scheduled refueling outages in the fourth quarter of 2010, compared with completing four and beginning a fifth scheduled refueling outage in the fourth quarter of 2009. Three Mile Island (TMI) Unit 1 was shut down from late October 2009 for an extended refueling outage which included the replacement of steam generators. The steam generator replacement increased the number of refueling outage days in the fourth quarter of 2009. As a result, the number of refueling outage days totaled 97 in the fourth quarter of 2010 versus 136 days in the fourth quarter of 2009. The number of non-refueling outage days at the Exelon-operated plants totaled 18 days in the fourth quarter of 2010 compared with 23 days in the fourth quarter of 2009. |
For the full year 2010, the Exelon-operated nuclear plants achieved an average capacity factor of 93.9 percent, as compared with 93.6 percent for 2009. The average annual capacity factor for the Exelon-operated plants during the five years ended 2010 was 94.0 percent.
| | • | | Fossil and Hydro Operations: The equivalent demand forced outage rate for Generation’s fossil fleet was 4.6 percent in the fourth quarter of 2010, compared with 12.9 percent in the fourth quarter of 2009. The improvement was largely due to the impact of extended maintenance outages in 2009. The equivalent availability factor for the hydroelectric facilities was 99.8 percent in the fourth quarter of 2010, compared with 99.6 percent in the fourth quarter of 2009. |
| | • | | Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted-for capacity. The proportion of expected generation hedged as of December 31, 2010 is 90 to 93 percent for 2011, 67 to 70 percent for 2012 and 32 to 35 percent for 2013. The primary objectives of Exelon’s hedging program are to manage market risks and protect the value of its generation and its investment grade balance sheet while preserving its ability to participate in improving long-term market fundamentals. |
| | • | | ComEd Electric Distribution Rate Case: On June 30, 2010, ComEd filed a rate increase request with the Illinois Commerce Commission (ICC) to allow the utility to continue modernizing its electric delivery system and recover the cost of substantial investments made since the last rate filing in 2007. In testimony submitted on January 3, 2011, ComEd revised its requested revenue increase to $326 million, reflecting certain adjustments made subsequent to its original request of $396 million. The ICC will determine any increase in rates after an 11-month proceeding with input from all stakeholders. The ICC is expected to issue its decision in late May 2011. |
| | • | | PECO Electric and Gas Distribution Rate Cases: On December 16, 2010, the Pennsylvania Public Utility Commission (PAPUC) approved PECO’s settlements with all interested parties regarding the increase in electric and natural gas distribution rates for customers, which became effective on January 1, 2011. The PAPUC approved an increase of $20 million in annual natural gas distribution revenue, which is approximately 46 percent of the $44 million originally requested, and a $225 million increase in annual electric distribution revenue, which is approximately 71 percent of the $316 million originally requested. Reflecting this and the results of the company’s four competitive electric supply procurements, residential electric customer bills will increase on average about 5 percent, or about $5 a month, |
beginning in
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| | January 2011. Overall bills for PECO residential natural gas customers will increase on average about 1 percent, or about $1 a month. |
| | • | | Pension Plan Funding:As a result of accelerated cash benefits associated with recent Federal tax legislation, on January 3, 2011, Exelon announced that its board of directors had authorized contributions to the Exelon pension plans in the first quarter of 2011 totaling $2.1 billion. This amount includes contributions that Exelon was previously expected to make in 2011. Exelon expects to fund the contributions with $500 million from cash from operations, $850 million from the accelerated cash tax benefits, and $750 million from the tax benefits of making the pension contributions. Exelon expects that the pension funded status will increase from 71 percent at December 31, 2010, to 89 percent projected at December 31, 2011, subject to actual 2011 asset returns and final actuarial valuations. |
| | • | | Financing Activities:On January 18, 2011, ComEd issued $600 million of 1.625 percent first mortgage bonds due 2014. The net proceeds of the bonds will be used as an interim source of liquidity for the contribution in the first quarter to the pension plans in which ComEd participates. ComEd anticipates receiving tax refunds as a result of both the pension contribution and the recent Federal tax legislation. As a result, the immediate use of the net proceeds to fund the planned contribution will allow those future cash receipts to be available to fund capital investment and for general corporate purposes. |
On October 25, 2010, Exelon announced that it had entered into new credit agreements totaling $94 million with 29 minority and community banks located in the regions the company serves. The lead arranger banks for the credit agreements are Seaway Bank and Trust Company in Chicago, Riverside Community Bank in Rockford, Ill., and United Bank of Philadelphia. The new credit agreements replace a 2009 arrangement for $67 million. Exelon’s minority and community banking program – the only one of its kind in the energy industry – aims to increase the company’s business with local and diverse banks in its key markets.
OPERATING COMPANY RESULTS
Generationconsists of owned and contracted electric generating facilities, wholesale energy marketing operations and competitive retail sales operations.
Fourth quarter 2010 net income was $424 million compared with $425 million in the fourth quarter of 2009. Fourth quarter 2010 net income included (all after tax) mark-to-market losses of $113 million from economic hedging activities, unrealized gains of $26 million related to NDT fund investments, costs of $17 million associated with the planned retirement of certain fossil generating units, a charge of $6 million for external costs associated with the acquisition of JDR and a charge of $4 million for costs associated with the 2007 Illinois electric rate settlement. Fourth quarter 2009 net income included (all after-tax) costs of $34 million associated with the retirement of the fossil generating units, mark-to-market gains of $26 million from economic hedging activities before the elimination of intercompany transactions, unrealized gains of $14 million related to NDT fund investments, costs of $13 million associated with the 2007 Illinois electric rate settlement and costs of $9 million associated with early debt retirements. Excluding the effects of these items, Generation’s net income in the fourth quarter of 2010 increased $97 million compared with the same quarter in 2009 primarily due to:
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| | • | | The impact on energy gross margin of higher energy prices under the power purchase agreement with PECO, favorable capacity pricing related to RPM and increased nuclear output largely reflecting fewer outage days. |
The increase in net income was partially offset by:
| | • | | The impact on energy gross margin of unfavorable market/portfolio conditions and higher nuclear fuel costs; and |
| | • | | Increased depreciation expense. |
Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $41.45 per MWh in the fourth quarter of 2010 compared with $38.36 per MWh in the fourth quarter of 2009.
ComEdconsists of the electricity transmission and distribution operations in northern Illinois.
ComEd recorded net income of $91 million in the fourth quarter of 2010, compared with net income of $98 million in the fourth quarter of 2009. Fourth quarter net income in 2010 included an after-tax decrease in costs of $6 million associated with an adjustment to ComEd’s asset retirement obligation. Fourth quarter net income in 2009 included after-tax costs of $5 million for the City of Chicago settlement agreement and after-tax costs of $2 million associated with the 2007 Illinois electric rate settlement. Excluding the effects of these items, ComEd’s net income in the fourth quarter of 2010 was down $20 million from the same quarter in 2009 primarily reflecting:
| | • | | The effect of the September 2010 Illinois Appellate Court ruling; |
| | • | | Increased operating and maintenance expense; and |
| | • | | Lower load, partially offset by the effects of favorable weather conditions. |
The decrease in net income was partially offset by lower uncollectible accounts expense.
In the fourth quarter of 2010, heating degree-days in the ComEd service territory were up 1.2 percent relative to the same period in 2009 and were 0.6 percent above normal. ComEd’s total retail electric deliveries increased by 0.6 percent quarter over quarter, primarily due to gains in deliveries to large commercial and industrial customers.
Weather-normalized retail electric deliveries decreased by 1.2 percent from the fourth quarter of 2009, primarily reflecting a decrease in deliveries to residential customers. For ComEd, weather had a favorable after-tax effect of $4 million on fourth quarter 2010 earnings relative to 2009 and a favorable after-tax effect of $1 million relative to normal weather that is incorporated in Exelon’s earnings guidance.
PECO consists of the electricity transmission and distribution operations and the retail natural gas distribution business in southeastern Pennsylvania.
PECO’s net income in the fourth quarter of 2010 was $21 million, down from $78 million in the fourth quarter of 2009. Fourth quarter net income in 2010 included an after-tax decrease in costs of $1 million associated with an adjustment to PECO’s asset retirement obligation. Excluding the effect of this item,
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PECO’s net income in the fourth quarter of 2010 was down $58 million from the same quarter in 2009 primarily reflecting:
| | • | | Decreased CTC revenue, as stranded costs were substantially recovered as of the end of the third quarter 2010, resulting in higher energy prices paid to Generation under the power purchase agreement; and |
| | • | | Increased operating and maintenance expense, primarily reflecting higher contracting and employee benefits expenses. |
The decrease in net income was partially offset by:
| | • | | Lower CTC amortization expense as scheduled in accordance with PECO’s 1998 Restructuring Settlement with the PAPUC; |
| | • | | The effects of favorable weather conditions; and |
| | • | | Lower interest expense on long-term debt. |
In the fourth quarter of 2010, heating degree-days in the PECO service territory were up 7.6 percent from 2009 and were 3.2 percent above normal. Total retail electric deliveries were up 1.4 percent from last year, reflecting an increase in deliveries to residential and large commercial and industrial customers. On the retail gas side, deliveries in the fourth quarter of 2010 were up 11.7 percent from the fourth quarter of 2009, primarily driven by the effects of colder weather conditions.
Weather-normalized retail electric deliveries were flat to the fourth quarter of 2009, reflecting a decline in residential and small commercial and industrial deliveries, offset by an increase in large commercial and industrial deliveries. For PECO, weather had a favorable after-tax effect of $6 million on fourth quarter 2010 earnings relative to 2009 and a favorable after-tax effect of $2 million relative to normal weather that is incorporated in Exelon’s earnings guidance.
Adjusted (non-GAAP) Operating Earnings
Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is attached. Additional earnings release attachments, which include the reconciliations on pages 7 and 8, are posted on Exelon’s Web site:www.exeloncorp.com and have been furnished to the Securities and Exchange Commission on Form 8-K on January 26, 2011.
Conference call information: Exelon has scheduled a conference call for 11:00 AM ET (10:00 AM CT) on January 26, 2011. The call-in number in the U.S. and Canada is 800-690-3108, and the international call-in number is 973-935-8753. If requested, the conference ID number is 34838808. Media representatives are invited to participate on a listen-only basis. The call will be web-cast and archived on Exelon’s Web site:www.exeloncorp.com. (Please select the Investors page.)
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Telephone replays will be available until February 9. The U.S. and Canada call-in number for replays is 800-642-1687, and the international call-in number is 706-645-9291. The conference ID number is 34838808.
Forward Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from these forward-looking statements include those discussed herein as well as those discussed in (1) Exelon’s 2009 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 18; (2) Exelon’s Third Quarter 2010 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors, (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 13 and (3) other factors discussed in filings with the Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company and Exelon Generation Company, LLC (Companies). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. None of the Companies undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.
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Exelon Corporation is one of the nation’s largest electric utilities with more than $18 billion in annual revenues. The company has one of the industry’s largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and southeastern Pennsylvania and natural gas to approximately 486,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC.
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Earnings Release Attachments
Table of Contents
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Consolidating Statements of Operations - Three Months Ended December 31, 2010 and 2009 | | | 1 | |
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Consolidating Statements of Operations - Twelve Months Ended December 31, 2010 and 2009 | | | 2 | |
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Business Segment Comparative Statements of Operations - Generation and ComEd - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 3 | |
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Business Segment Comparative Statements of Operations - PECO and Other - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 4 | |
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Consolidated Balance Sheets - December 31, 2010 and December 31, 2009 | | | 5 | |
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Consolidated Statements of Cash Flows - Twelve Months Ended December 31, 2010 and 2009 | | | 6 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Three Months Ended December 31, 2010 and 2009 | | | 7 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Exelon - Twelve Months Ended December 31, 2010 and 2009 | | | 8 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Three Months Ended December 31, 2010 and 2009 | | | 9 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment - Twelve Months Ended December 31, 2010 and 2009 | | | 10 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Generation - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 11 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - ComEd - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 12 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - PECO - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 13 | |
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Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations - Other - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 14 | |
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Exelon Generation Statistics - Three Months Ended December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009 | | | 15 | |
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Exelon Generation Statistics - Twelve Months Ended December 31, 2010 and 2009 | | | 16 | |
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ComEd Statistics - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 17 | |
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PECO Statistics - Three and Twelve Months Ended December 31, 2010 and 2009 | | | 18 | |
EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, 2010 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon Consolidated | |
Operating revenues | | $ | 2,596 | | | $ | 1,372 | | | $ | 1,299 | | | $ | (773 | ) | | $ | 4,494 | |
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Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 602 | | | | 671 | | | | 652 | | | | (773 | ) | | | 1,152 | |
Fuel | | | 418 | | | | — | | | | 123 | | | | — | | | | 541 | |
Operating and maintenance | | | 731 | | | | 247 | | | | 172 | | | | 10 | | | | 1,160 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 27 | | | | 17 | | | | — | | | | 44 | |
Depreciation and amortization | | | 129 | | | | 130 | | | | 201 | | | | 5 | | | | 465 | |
Taxes other than income | | | 56 | | | | 68 | | | | 64 | | | | 5 | | | | 193 | |
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Total operating expenses | | | 1,936 | | | | 1,143 | | | | 1,229 | | | | (753 | ) | | | 3,555 | |
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Operating income (loss) | | | 660 | | | | 229 | | | | 70 | | | | (20 | ) | | | 939 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (44 | ) | | | (86 | ) | | | (34 | ) | | | (19 | ) | | | (183 | ) |
Other, net | | | 118 | | | | 10 | | | | 2 | | | | 5 | | | | 135 | |
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Total other income and deductions | | | 74 | | | | (76 | ) | | | (32 | ) | | | (14 | ) | | | (48 | ) |
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Income (loss) before income taxes | | | 734 | | | | 153 | | | | 38 | | | | (34 | ) | | | 891 | |
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Income taxes | | | 310 | | | | 62 | | | | 17 | | | | (22 | ) | | | 367 | |
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Net income (loss) | | $ | 424 | | | $ | 91 | | | $ | 21 | | | $ | (12 | ) | | $ | 524 | |
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| | | Three Months Ended December 31, 2009 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon Consolidated | |
Operating revenues | | $ | 2,278 | | | $ | 1,357 | | | $ | 1,266 | | | $ | (785 | ) | | $ | 4,116 | |
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Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 375 | | | | 692 | | | | 532 | | | | (784 | ) | | | 815 | |
Fuel | | | 300 | | | | — | | | | 126 | | | | (1 | ) | | | 425 | |
Operating and maintenance | | | 727 | | | | 232 | | | | 159 | | | | 2 | | | | 1,120 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 19 | | | | — | | | | — | | | | 19 | |
Depreciation and amortization | | | 110 | | | | 123 | | | | 225 | | | | 16 | | | | 474 | |
Taxes other than income | | | 55 | | | | 67 | | | | 64 | | | | 1 | | | | 187 | |
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Total operating expenses | | | 1,567 | | | | 1,133 | | | | 1,106 | | | | (766 | ) | | | 3,040 | |
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Operating income (loss) | | | 711 | | | | 224 | | | | 160 | | | | (19 | ) | | | 1,076 | |
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Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (36 | ) | | | (78 | ) | | | (42 | ) | | | (20 | ) | | | (176 | ) |
Loss in equity method investments | | | — | | | | — | | | | (5 | ) | | | (1 | ) | | | (6 | ) |
Other, net | | | 50 | | | | 11 | | | | 5 | | | | (6 | ) | | | 60 | |
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Total other income and deductions | | | 14 | | | | (67 | ) | | | (42 | ) | | | (27 | ) | | | (122 | ) |
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Income (loss) before income taxes | | | 725 | | | | 157 | | | | 118 | | | | (46 | ) | | | 954 | |
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Income taxes | | | 300 | | | | 59 | | | | 40 | | | | (26 | ) | | | 373 | |
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Net income (loss) | | $ | 425 | | | $ | 98 | | | $ | 78 | | | $ | (20 | ) | | $ | 581 | |
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| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a rider. An equal and offsetting amount has been reflected in operating revenues. |
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EXELON CORPORATION
Consolidating Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, 2010 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon Consolidated | |
Operating revenues | | $ | 10,025 | | | $ | 6,204 | | | $ | 5,519 | | | $ | (3,104 | ) | | $ | 18,644 | |
| | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,853 | | | | 3,307 | | | | 2,361 | | | | (3,096 | ) | | | 4,425 | |
Fuel | | | 1,610 | | | | — | | | | 401 | | | | (1 | ) | | | 2,010 | |
Operating and maintenance | | | 2,812 | | | | 975 | | | | 680 | | | | (14 | ) | | | 4,453 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 94 | | | | 53 | | | | — | | | | 147 | |
Depreciation and amortization | | | 474 | | | | 516 | | | | 1,060 | | | | 25 | | | | 2,075 | |
Taxes other than income | | | 230 | | | | 256 | | | | 303 | | | | 19 | | | | 808 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total operating expenses | | | 6,979 | | | | 5,148 | | | | 4,858 | | | | (3,067 | ) | | | 13,918 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating income (loss) | | | 3,046 | | | | 1,056 | | | | 661 | | | | (37 | ) | | | 4,726 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (153 | ) | | | (386 | ) | | | (193 | ) | | | (85 | ) | | | (817 | ) |
Other, net | | | 257 | | | | 24 | | | | 8 | | | | 23 | | | | 312 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | 104 | | | | (362 | ) | | | (185 | ) | | | (62 | ) | | | (505 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 3,150 | | | | 694 | | | | 476 | | | | (99 | ) | | | 4,221 | |
| | | | | |
Income taxes | | | 1,178 | | | | 357 | | | | 152 | | | | (29 | ) | | | 1,658 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | �� | $ | 1,972 | | | $ | 337 | | | $ | 324 | | | $ | (70 | ) | | $ | 2,563 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Twelve Months Ended December 31, 2009 | |
| | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon Consolidated | |
Operating revenues | | $ | 9,703 | | | $ | 5,774 | | | $ | 5,311 | | | $ | (3,470 | ) | | $ | 17,318 | |
| | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,338 | | | | 3,065 | | | | 2,274 | | | | (3,462 | ) | | | 3,215 | |
Fuel | | | 1,594 | | | | — | | | | 472 | | | | — | | | | 2,066 | |
Operating and maintenance | | | 2,938 | | | | 1,028 | | | | 640 | | | | 6 | | | | 4,612 | |
Operating and maintenance for regulatory required programs (a) | | | — | | | | 63 | | | | — | | | | — | | | | 63 | |
Depreciation and amortization | | | 333 | | | | 494 | | | | 952 | | | | 55 | | | | 1,834 | |
Taxes other than income | | | 205 | | | | 281 | | | | 276 | | | | 16 | | | | 778 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total operating expenses | | | 6,408 | | | | 4,931 | | | | 4,614 | | | | (3,385 | ) | | | 12,568 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Operating income (loss) | | | 3,295 | | | | 843 | | | | 697 | | | | (85 | ) | | | 4,750 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (113 | ) | | | (319 | ) | | | (187 | ) | | | (112 | ) | | | (731 | ) |
Loss in equity method investments | | | (3 | ) | | | — | | | | (24 | ) | | | — | | | | (27 | ) |
Other, net | | | 376 | | | | 79 | | | | 13 | | | | (41 | ) | | | 427 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Total other income and deductions | | | 260 | | | | (240 | ) | | | (198 | ) | | | (153 | ) | | | (331 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Income (loss) before income taxes | | | 3,555 | | | | 603 | | | | 499 | | | | (238 | ) | | | 4,419 | |
| | | | | |
Income taxes | | | 1,433 | | | | 229 | | | | 146 | | | | (96 | ) | | | 1,712 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Net income (loss) | | $ | 2,122 | | | $ | 374 | | | $ | 353 | | | $ | (142 | ) | | $ | 2,707 | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a rider. An equal and offsetting amount has been reflected in operating revenues. |
2
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | 2,596 | | | $ | 2,278 | | | $ | 318 | | | $ | 10,025 | | | $ | 9,703 | | | $ | 322 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 602 | | | | 375 | | | | 227 | | | | 1,853 | | | | 1,338 | | | | 515 | |
Fuel | | | 418 | | | | 300 | | | | 118 | | | | 1,610 | | | | 1,594 | | | | 16 | |
Operating and maintenance | | | 731 | | | | 727 | | | | 4 | | | | 2,812 | | | | 2,938 | | | | (126 | ) |
Depreciation and amortization | | | 129 | | | | 110 | | | | 19 | | | | 474 | | | | 333 | | | | 141 | |
Taxes other than income | | | 56 | | | | 55 | | | | 1 | | | | 230 | | | | 205 | | | | 25 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,936 | | | | 1,567 | | | | 369 | | | | 6,979 | | | | 6,408 | | | | 571 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 660 | | | | 711 | | | | (51 | ) | | | 3,046 | | | | 3,295 | | | | (249 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (44 | ) | | | (36 | ) | | | (8 | ) | | | (153 | ) | | | (113 | ) | | | (40 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | — | | | | (3 | ) | | | 3 | |
Other, net | | | 118 | | | | 50 | | | | 68 | | | | 257 | | | | 376 | | | | (119 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | 74 | | | | 14 | | | | 60 | | | | 104 | | | | 260 | | | | (156 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 734 | | | | 725 | | | | 9 | | | | 3,150 | | | | 3,555 | | | | (405 | ) |
| | | | | | |
Income taxes | | | 310 | | | | 300 | | | | 10 | | | | 1,178 | | | | 1,433 | | | | (255 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 424 | | | $ | 425 | | | $ | (1 | ) | | $ | 1,972 | | | $ | 2,122 | | | $ | (150 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | ComEd | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | 1,372 | | | $ | 1,357 | | | $ | 15 | | | $ | 6,204 | | | $ | 5,774 | | | $ | 430 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 671 | | | | 692 | | | | (21 | ) | | | 3,307 | | | | 3,065 | | | | 242 | |
Operating and maintenance | | | 247 | | | | 232 | | | | 15 | | | | 975 | | | | 1,028 | | | | (53 | ) |
Operating and maintenance for regulatory required programs (a) | | | 27 | | | | 19 | | | | 8 | | | | 94 | | | | 63 | | | | 31 | |
Depreciation and amortization | | | 130 | | | | 123 | | | | 7 | | | | 516 | | | | 494 | | | | 22 | |
Taxes other than income | | | 68 | | | | 67 | | | | 1 | | | | 256 | | | | 281 | | | | (25 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,143 | | | | 1,133 | | | | 10 | | | | 5,148 | | | | 4,931 | | | | 217 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 229 | | | | 224 | | | | 5 | | | | 1,056 | | | | 843 | | | | 213 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (86 | ) | | | (78 | ) | | | (8 | ) | | | (386 | ) | | | (319 | ) | | | (67 | ) |
Other, net | | | 10 | | | | 11 | | | | (1 | ) | | | 24 | | | | 79 | | | | (55 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (76 | ) | | | (67 | ) | | | (9 | ) | | | (362 | ) | | | (240 | ) | | | (122 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 153 | | | | 157 | | | | (4 | ) | | | 694 | | | | 603 | | | | 91 | |
| | | | | | |
Income taxes | | | 62 | | | | 59 | | | | 3 | | | | 357 | | | | 229 | | | | 128 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 91 | | | $ | 98 | | | $ | (7 | ) | | $ | 337 | | | $ | 374 | | | $ | (37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
3
EXELON CORPORATION
Business Segment Comparative Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | 1,299 | | | $ | 1,266 | | | $ | 33 | | | $ | 5,519 | | | $ | 5,311 | | | $ | 208 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 652 | | | | 532 | | | | 120 | | | | 2,361 | | | | 2,274 | | | | 87 | |
Fuel | | | 123 | | | | 126 | | | | (3 | ) | | | 401 | | | | 472 | | | | (71 | ) |
Operating and maintenance | | | 172 | | | | 159 | | | | 13 | | | | 680 | | | | 640 | | | | 40 | |
Operating and maintenance for regulatory required programs (a) | | | 17 | | | | — | | | | 17 | | | | 53 | | | | — | | | | 53 | |
Depreciation and amortization | | | 201 | | | | 225 | | | | (24 | ) | | | 1,060 | | | | 952 | | | | 108 | |
Taxes other than income | | | 64 | | | | 64 | | | | — | | | | 303 | | | | 276 | | | | 27 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 1,229 | | | | 1,106 | | | | 123 | | | | 4,858 | | | | 4,614 | | | | 244 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 70 | | | | 160 | | | | (90 | ) | | | 661 | | | | 697 | | | | (36 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (34 | ) | | | (42 | ) | | | 8 | | | | (193 | ) | | | (187 | ) | | | (6 | ) |
Loss in equity method investments | | | — | | | | (5 | ) | | | 5 | | | | — | | | | (24 | ) | | | 24 | |
Other, net | | | 2 | | | | 5 | | | | (3 | ) | | | 8 | | | | 13 | | | | (5 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (32 | ) | | | (42 | ) | | | 10 | | | | (185 | ) | | | (198 | ) | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 38 | | | | 118 | | | | (80 | ) | | | 476 | | | | 499 | | | | (23 | ) |
| | | | | | |
Income taxes | | | 17 | | | | 40 | | | | (23 | ) | | | 152 | | | | 146 | | | | 6 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 21 | | | $ | 78 | | | $ | (57 | ) | | $ | 324 | | | $ | 353 | | | $ | (29 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| |
| | | Other (b) | |
| | | Three Months Ended December 31, | | | Twelve Months Ended December 31, | |
| | | 2010 | | | 2009 | | | Variance | | | 2010 | | | 2009 | | | Variance | |
Operating revenues | | $ | (773 | ) | | $ | (785 | ) | | $ | 12 | | | $ | (3,104 | ) | | $ | (3,470 | ) | | $ | 366 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (773 | ) | | | (784 | ) | | | 11 | | | | (3,096 | ) | | | (3,462 | ) | | | 366 | |
Fuel | | | — | | | | (1 | ) | | | 1 | | | | (1 | ) | | | — | | | | (1 | ) |
Operating and maintenance | | | 10 | | | | 2 | | | | 8 | | | | (14 | ) | | | 6 | | | | (20 | ) |
Depreciation and amortization | | | 5 | | | | 16 | | | | (11 | ) | | | 25 | | | | 55 | | | | (30 | ) |
Taxes other than income | | | 5 | | | | 1 | | | | 4 | | | | 19 | | | | 16 | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | (753 | ) | | | (766 | ) | | | 13 | | | | (3,067 | ) | | | (3,385 | ) | | | 318 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating loss | | | (20 | ) | | | (19 | ) | | | (1 | ) | | | (37 | ) | | | (85 | ) | | | 48 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (19 | ) | | | (20 | ) | | | 1 | | | | (85 | ) | | | (112 | ) | | | 27 | |
Loss in equity method investments | | | — | | | | (1 | ) | | | 1 | | | | — | | | | — | | | | — | |
Other, net | | | 5 | | | | (6 | ) | | | 11 | | | | 23 | | | | (41 | ) | | | 64 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (14 | ) | | | (27 | ) | | | 13 | | | | (62 | ) | | | (153 | ) | | | 91 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loss before income taxes | | | (34 | ) | | | (46 | ) | | | 12 | | | | (99 | ) | | | (238 | ) | | | 139 | |
| | | | | | |
Income taxes | | | (22 | ) | | | (26 | ) | | | 4 | | | | (29 | ) | | | (96 | ) | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net loss | | $ | (12 | ) | | $ | (20 | ) | | $ | 8 | | | $ | (70 | ) | | $ | (142 | ) | | $ | 72 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (b) | Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities. |
4
EXELON CORPORATION
Consolidated Balance Sheets
(unaudited)
(in millions)
| | | | | | | | |
| | | December 31,
2010 | | | December 31,
2009 | |
ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 1,612 | | | $ | 2,010 | |
Restricted cash and investments | | | 30 | | | | 40 | |
Accounts receivable, net | | | | | | | | |
Customer | | | 1,932 | | | | 1,563 | |
Other | | | 1,196 | | | | 486 | |
Mark-to-market derivative assets | | | 487 | | | | 376 | |
Inventories, net | | | | | | | | |
Fossil fuel | | | 216 | | | | 198 | |
Materials and supplies | | | 590 | | | | 559 | |
Other | | | 335 | | | | 209 | |
| | | | | | | | |
Total current assets | | | 6,398 | | | | 5,441 | |
| | | | | | | | |
| | |
Property, plant and equipment, net | | | 29,941 | | | | 27,341 | |
| | |
Deferred debits and other assets | | | | | | | | |
Regulatory assets | | | 4,140 | | | | 4,872 | |
Nuclear decommissioning trust (NDT) funds | | | 6,408 | | | | 6,669 | |
Investments | | | 732 | | | | 724 | |
Goodwill | | | 2,625 | | | | 2,625 | |
Mark-to-market derivative assets | | | 409 | | | | 649 | |
Pledged assets for Zion Station decommissioning | | | 824 | | | | — | |
Other | | | 763 | | | | 859 | |
| | | | | | | | |
Total deferred debits and other assets | | | 15,901 | | | | 16,398 | |
| | | | | | | | |
Total assets | | $ | 52,240 | | | $ | 49,180 | |
| | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | |
| | |
Current liabilities | | | | | | | | |
Short-term borrowings | | $ | — | | | $ | 155 | |
Short-term notes payable — accounts receivable agreement | | | 225 | | | | — | |
Long-term debt due within one year | | | 599 | | | | 639 | |
Long-term debt to PECO Energy Transition Trust due within one year | | | — | | | | 415 | |
Accounts payable | | | 1,373 | | | | 1,345 | |
Mark-to-market derivative liabilities | | | 38 | | | | 198 | |
Accrued expenses | | | 1,040 | | | | 923 | |
Deferred income taxes | | | 85 | | | | 152 | |
Other
| | | 880 | | | | 411 | |
| | | | | | | | |
Total current liabilities | | | 4,240 | | | | 4,238 | |
| | | | | | | | |
| | |
Long-term debt | | | 11,614 | | | | 10,995 | |
Long-term debt to financing trusts | | | 390 | | | | 390 | |
| | |
Deferred credits and other liabilities | | | | | | | | |
Deferred income taxes and unamortized investment tax credits | | | 6,621 | | | | 5,750 | |
Asset retirement obligations | | | 3,494 | | | | 3,434 | |
Pension obligations | | | 3,658 | | | | 3,625 | |
Non-pension postretirement benefit obligations | | | 2,218 | | | | 2,180 | |
Spent nuclear fuel obligation | | | 1,018 | | | | 1,017 | |
Regulatory liabilities | | | 3,555 | | | | 3,492 | |
Mark-to-market derivative liabilities | | | 21 | | | | 23 | |
Payable for Zion Station decommissioning | | | 659 | | | | — | |
Other | | | 1,102 | | | | 1,309 | |
| | | | | | | | |
Total deferred credits and other liabilities | | | 22,346 | | | | 20,830 | |
| | | | | | | | |
Total liabilities | | | 38,590 | | | | 36,453 | |
| | | | | | | | |
| | |
Preferred securities of subsidiary | | | 87 | | | | 87 | |
Shareholders’ equity | | | | | | | | |
Common stock | | | 9,006 | | | | 8,923 | |
Treasury stock, at cost | | | (2,327 | ) | | | (2,328 | ) |
Retained earnings | | | 9,304 | | | | 8,134 | |
Accumulated other comprehensive loss, net | | | (2,423 | ) | | | (2,089 | ) |
| | | | | | | | |
Total shareholders’ equity | | | 13,560 | | | | 12,640 | |
| | |
Noncontrolling interest | | | 3 | | | | — | |
| | | | | | | | |
| | |
Total equity | | | 13,563 | | | | 12,640 | |
| | | | | | | | |
| | |
Total liabilities and shareholders’ equity | | $ | 52,240 | | | $ | 49,180 | |
| | | | | | | | |
5
EXELON CORPORATION
Consolidated Statements of Cash Flows
(unaudited)
(in millions)
| | | | | | | | |
| | | Twelve Months Ended | |
| | | December 31, | |
| | | 2010 | | | 2009 | |
Cash flows from operating activities | | | | | | | | |
Net income | | $ | 2,563 | | | $ | 2,707 | |
Adjustments to reconcile net income to net cash flows provided by operating activities: | | | | | | | | |
Depreciation, amortization and accretion, including nuclear fuel amortization | | | 2,943 | | | | 2,601 | |
Impairment of long-lived assets | | | — | | | | 223 | |
Deferred income taxes and amortization of investment tax credits | | | 981 | | | | 756 | |
Net fair value changes related to derivatives | | | (88 | ) | | | (95 | ) |
Net realized and unrealized gains on NDT fund investments | | | (105 | ) | | | (207 | ) |
Other non-cash operating activities | | | 609 | | | | 652 | |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable | | | (232 | ) | | | 234 | |
Inventories | | | (62 | ) | | | 51 | |
Accounts payable, accrued expenses and other current liabilities | | | 472 | | | | (254 | ) |
Options premiums paid, net | | | (124 | ) | | | (40 | ) |
Counterparty collateral received (posted), net | | | (155 | ) | | | 196 | |
Income taxes | | | (543 | ) | | | (29 | ) |
Pension and non-pension postretirement benefit contributions | | | (959 | ) | | | (588 | ) |
Other assets and liabilities | | | (56 | ) | | | (113 | ) |
| | | | | | | | |
Net cash flows provided by operating activities | | | 5,244 | | | | 6,094 | |
| | | | | | | | |
| | |
Cash flows from investing activities | | | | | | | | |
Capital expenditures | | | (3,326 | ) | | | (3,273 | ) |
Proceeds from nuclear decommissioning trust fund sales | | | 3,764 | | | | 4,292 | |
Investment in nuclear decommissioning trust funds | | | (3,907 | ) | | | (4,531 | ) |
Acquisition of Exelon Wind | | | (893 | ) | | | — | |
Proceeds from sales of investments | | | 28 | | | | 41 | |
Purchases of investments | | | (22 | ) | | | (28 | ) |
Change in restricted cash | | | 423 | | | | 35 | |
Other investing activities | | | 39 | | | | 6 | |
| | | | | | | | |
Net cash flows used in investing activities | | | (3,894 | ) | | | (3,458 | ) |
| | | | | | | | |
| | |
Cash flows from financing activities | | | | | | | | |
Changes in short-term debt | | | (155 | ) | | | (56 | ) |
Issuance of long-term debt | | | 1,398 | | | | 1,987 | |
Retirement of long-term debt | | | (828 | ) | | | (1,773 | ) |
Retirement of long-term debt of variable interest entity | | | (806 | ) | | | — | |
Retirement of long-term debt to financing affiliates | | | — | | | | (709 | ) |
Dividends paid on common stock | | | (1,389 | ) | | | (1,385 | ) |
Proceeds from employee stock plans | | | 48 | | | | 42 | |
Other financing activities | | | (16 | ) | | | (3 | ) |
| | | | | | | | |
Net cash flows used in financing activities | | | (1,748 | ) | | | (1,897 | ) |
| | | | | | | | |
| | |
Increase (decrease) in cash and cash equivalents | | | (398 | ) | | | 739 | |
Cash and cash equivalents at beginning of period | | | 2,010 | | | | 1,271 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 1,612 | | | $ | 2,010 | |
| | | | | | | | |
6
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended December 31, 2010 | | | Three Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 4,494 | | | $ | 6 | (c) | | $ | 4,500 | | | $ | 4,116 | | | $ | 32 | (c),(i) | | $ | 4,148 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,152 | | | | (145 | )(d) | | | 1,007 | | | | 815 | | | | (36 | )(d) | | | 779 | |
Fuel | | | 541 | | | | (41 | )(d) | | | 500 | | | | 425 | | | | 78 | (d) | | | 503 | |
Operating and maintenance | | | 1,160 | | | | (2 | )(e),(f),(g) | | | 1,158 | | | | 1,120 | | | | (24 | )(e) | | | 1,096 | |
Operating and maintenance for regulatory required programs (b) | | | 44 | | | | — | | | | 44 | | | | 19 | | | | — | | | | 19 | |
Depreciation and amortization | | | 465 | | | | (23 | )(e) | | | 442 | | | | 474 | | | | (32 | )(e) | | | 442 | |
Taxes other than income | | | 193 | | | | — | | | | 193 | | | | 187 | | | | — | | | | 187 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total operating expenses | | | 3,555 | | | | (211 | ) | | | 3,344 | | | | 3,040 | | | | (14 | ) | | | 3,026 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 939 | | | | 217 | | | | 1,156 | | | | 1,076 | | | | 46 | | | | 1,122 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (183 | ) | | | — | | | | (183 | ) | | | (176 | ) | | | — | | | | (176 | ) |
| | | | | | |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (6 | ) | | | — | | | | (6 | ) |
Other, net | | | 135 | | | | (83 | )(h) | | | 52 | | | | 60 | | | | (18 | )(h),(j) | | | 42 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (48 | ) | | | (83 | ) | | | (131 | ) | | | (122 | ) | | | (18 | ) | | | (140 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 891 | | | | 134 | | | | 1,025 | | | | 954 | | | | 28 | | | | 982 | |
Income taxes | | | 367 | | |
|
27 | (c),(d),(e),
(f),(g),(h) | | | 394 | | | | 373 | | |
|
(1) | (c),(d),(e),
(h),(i),(j) | | | 372 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 524 | | | $ | 107 | | | $ | 631 | | | $ | 581 | | | $ | 29 | | | $ | 610 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Effective tax rate | | | 41.2 | % | | | | | | | 38.4 | % | | | 39.1 | % | | | | | | | 37.9 | % |
| | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.79 | | | $ | 0.17 | | | $ | 0.96 | | | $ | 0.88 | | | $ | 0.04 | | | $ | 0.92 | |
Diluted | | $ | 0.79 | | | $ | 0.17 | | | $ | 0.96 | | | $ | 0.88 | | | $ | 0.04 | | | $ | 0.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 662 | | | | | | | | 662 | | | | 660 | | | | | | | | 660 | |
Diluted | | | 663 | | | | | | | | 663 | | | | 662 | | | | | | | | 662 | |
|
| Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | |
2007 Illinois electric rate settlement (c) | | | | | | $ | 0.01 | | | | | | | | | | | $ | 0.02 | | | | | |
Mark-to-market impact of economic hedging activities (d) | | | | | | | 0.17 | | | | | | | | | | | | (0.04 | ) | | | | |
Retirement of fossil generating units (e) | | | | | | | 0.03 | | | | | | | | | | | | 0.05 | | | | | |
Acquisition costs (f) | | | | | | | 0.01 | | | | | | | | | | | | — | | | | | |
Asset retirement obligation reduction (g) | | | | | | | (0.01 | ) | | | | | | | | | | | — | | | | | |
Unrealized gains related to NDT fund investments (h) | | | | | | | (0.04 | ) | | | | | | | | | | | (0.02 | ) | | | | |
City of Chicago Settlement with ComEd (i) | | | | | | | — | | | | | | | | | | | | 0.01 | | | | | |
Costs associated with early debt retirements (j) | | | | | | | — | | | | | | | | | | | | 0.02 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total adjustments | | | | | | $ | 0.17 | | | | | | | | | | | $ | 0.04 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with accounting principles generally accepted in the United States (GAAP). |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
| (e) | Adjustment to exclude costs associated with the planned retirement of fossil generating units. |
| (f) | Adjustment to exclude external costs associated with Exelon’s acquisition of John Deere Renewables, LLC (JDR) (now known as Exelon Wind). |
| (g) | Adjustment to exclude a decrease in 2010 in ComEd and PECO’s asset retirement obligations. |
| (h) | Adjustment to exclude unrealized gains in 2010 and 2009 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
| (i) | Adjustment to exclude costs associated with ComEd’s 2007 settlement agreement with the City of Chicago. |
| (j) | Adjustment to exclude costs associated with early debt retirements. |
7
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations
(unaudited)
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Twelve Months Ended December 31, 2010 | | | Twelve Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted
Non-GAAP | |
Operating revenues | | $ | 18,644 | | | $ | 25 | (c),(d) | | $ | 18,669 | | | $ | 17,318 | | | $ | 114 | (c),(d) | | $ | 17,432 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 4,425 | | | | (3 | )(e) | | | 4,422 | | | | 3,215 | | | | 94 | (e) | | | 3,309 | |
Fuel | | | 2,010 | | | | 32 | (e),(f) | | | 2,042 | | | | 2,066 | | | | 87 | (e) | | | 2,153 | |
Operating and maintenance | | | 4,453 | | |
|
(4) | (g),(h),(i),
(j) | | | 4,449 | | | | 4,612 | | |
|
(265) | (c),(h),(i),(j),
(m),(n) | | | 4,347 | |
Operating and maintenance for regulatory required programs (b) | | | 147 | | | | — | | | | 147 | | | | 63 | | | | — | | | | 63 | |
Depreciation and amortization | | | 2,075 | | | | (80 | )(h) | | | 1,995 | | | | 1,834 | | | | (32 | )(h) | | | 1,802 | |
Taxes other than income | | | 808 | | | | — | | | | 808 | | | | 778 | | | | — | | | | 778 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 13,918 | | | | (55 | ) | | | 13,863 | | | | 12,568 | | | | (116 | ) | | | 12,452 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Operating income | | | 4,726 | | | | 80 | | | | 4,806 | | | | 4,750 | | | | 230 | | | | 4,980 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (817 | ) | | | 103 | (k) | | | (714 | ) | | | (731 | ) | | | 12 | (k),(o) | | | (719 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (27 | ) | | | — | | | | (27 | ) |
Other, net | | | 312 | | | | (153 | )(k),(l) | | | 159 | | | | 427 | | | | (324 | )(k),(l),(o) | | | 103 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total other income and deductions | | | (505 | ) | | | (50 | ) | | | (555 | ) | | | (331 | ) | | | (312 | ) | | | (643 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 4,221 | | | | 30 | | | | 4,251 | | | | 4,419 | | | | (82 | ) | | | 4,337 | |
Income taxes | | | 1,658 | | |
|
(96) | (c),(d),(e),
(f),(g),(h),
(i),(j),(k),(l) | | | 1,562 | | | | 1,712 | | |
|
(98) | (c),(d),(e),(h),
(i),(j),(k),(l),
(m),(n),(o) | | | 1,614 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Net income | | $ | 2,563 | | | $ | 126 | | | $ | 2,689 | | | $ | 2,707 | | | $ | 16 | | | $ | 2,723 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Effective tax rate | | | 39.3 | % | | | | | | | 36.7 | % | | | 38.7 | % | | | | | | | 37.2 | % |
| | | | | | |
Earnings per average common share | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 3.88 | | | $ | 0.19 | | | $ | 4.07 | | | $ | 4.10 | | | $ | 0.03 | | | $ | 4.13 | |
Diluted | | $ | 3.87 | | | $ | 0.19 | | | $ | 4.06 | | | $ | 4.09 | | | $ | 0.03 | | | $ | 4.12 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Average common shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 661 | | | | | | | | 661 | | | | 659 | | | | | | | | 659 | |
Diluted | | | 663 | | | | | | | | 663 | | | | 662 | | | | | | | | 662 | |
|
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP: | |
2007 Illinois electric rate settlement (c) | | | | | | $ | 0.02 | | | | | | | | | | | $ | 0.10 | | | | | |
City of Chicago settlement (d) | | | | | | | — | | | | | | | | | | | | 0.01 | | | | | |
Mark-to-market impact of economic hedging activities (e) | | | | | | | (0.08 | ) | | | | | | | | | | | (0.16 | ) | | | | |
Impairment of certain emissions allowances (f) | | | | | | | 0.05 | | | | | | | | | | | | — | | | | | |
Charge resulting from health care legislation (g) | | | | | | | 0.10 | | | | | | | | | | | | — | | | | | |
Retirement of fossil generating units (h) | | | | | | | 0.08 | | | | | | | | | | | | 0.05 | | | | | |
Acquisition costs (i) | | | | | | | 0.01 | | | | | | | | | | | | 0.03 | | | | | |
Asset retirement obligation reduction (j) | | | | | | | (0.01 | ) | | | | | | | | | | | (0.05 | ) | | | | |
Remeasurement of income tax uncertainties (k) | | | | | | | 0.10 | | | | | | | | | | | | (0.10 | ) | | | | |
Unrealized gains related to NDT fund investments (l) | | | | | | | (0.08 | ) | | | | | | | | | | | (0.19 | ) | | | | |
2009 restructuring charges (m) | | | | | | | — | | | | | | | | | | | | 0.03 | | | | | |
Impairment of certain generating assets (n) | | | | | | | — | | | | | | | | | | | | 0.20 | | | | | |
Costs associated with early debt retirements (o) | | | | | | | — | | | | | | | | | | | | 0.11 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Total adjustments | | | | | | $ | 0.19 | | | | | | | | | | | $ | 0.03 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (d) | Adjustment to exclude costs associated with ComEd’s 2007 settlement agreement with the City of Chicago. |
| (e) | Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities. |
| (f) | Adjustment to exclude a non-cash charge for the impairment of certain SO2 emission allowances as a result of declining market prices since the release of the EPA’s proposed Transport Rule in the third quarter of 2010. |
| (g) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (h) | Adjustment to exclude costs associated with the planned retirement of fossil generating units. |
| (i) | Adjustment to exclude external costs associated with Exelon’s acquisition of JDR (now known as Exelon Wind) and the proposed acquisition of NRG, which was terminated in July 2009. |
| (j) | Adjustment to exclude a decrease in 2010 in ComEd and PECO’s asset retirement obligations and a decrease in 2009 in Generation’s decomissioning obligation. |
| (k) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties and a 2009 change in state deferred income taxes. |
| (l) | Adjustment to exclude unrealized gains in 2010 and 2009 associated with Generation’s NDT fund investments and the associated contractual accounting relating to income taxes. |
| (m) | Adjustment to exclude 2009 charges associated with the elimination of management and staff positions. |
| (n) | Adjustment to exclude a non-cash charge for the impairment of certain of Generation’s Texas plants. |
| (o) | Adjustment to exclude costs associated with early debt retirements. |
8
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Earnings (in millions)
Three Months Ended December 31, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon
Earnings per
Diluted Share | | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon | |
2009 GAAP Earnings (Loss) | | $ | 0.88 | | | $ | 425 | | | $ | 98 | | | $ | 78 | | | $ | (20 | ) | | $ | 581 | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss)Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | 0.02 | | | | 13 | | | | 2 | | | | — | | | | — | | | | 15 | |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.04 | ) | | | (26 | ) | | | — | | | | — | | | | — | | | | (26 | ) |
Unrealized Gains Related to NDT Fund Investments (1) | | | (0.02 | ) | | | (14 | ) | | | — | | | | — | | | | — | | | | (14 | ) |
City of Chicago Settlement with ComEd | | | 0.01 | | | | — | | | | 5 | | | | — | | | | — | | | | 5 | |
Costs Associated with Early Debt Retirements | | | 0.02 | | | | 9 | | | | — | | | | — | | | | 6 | | | | 15 | |
Retirement of Fossil Generating Units (2) | | | 0.05 | | | | 34 | | | | — | | | | — | | | | — | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 0.92 | | | | 441 | | | | 105 | | | | 78 | | | | (14 | ) | | | 610 | |
| | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Generation Energy Margins, Excluding Mark-to-Market: | | | | | | | | | | | | | | | | | | | | | | | | |
Nuclear Output (3) | | | 0.04 | | | | 27 | | | | — | | | | — | | | | — | | | | 27 | |
Nuclear Fuel Costs (4) | | | (0.02 | ) | | | (15 | ) | | | — | | | | — | | | | — | | | | (15 | ) |
Reliability Pricing Model (RPM) Capacity Pricing | | | 0.07 | | | | 48 | | | | — | | | | — | | | | — | | | | 48 | |
Market and Portfolio Conditions (5) | | | (0.03 | ) | | | (22 | ) | | | — | | | | — | | | | — | | | | (22 | ) |
ComEd and PECO Margins: | | | | | | | | | | | | | | | | | | | | | | | | |
Weather | | | 0.02 | | | | — | | | | 4 | | | | 6 | | | | — | | | | 10 | |
Load | | | (0.01 | ) | | | — | | | | (5 | ) | | | — | | | | — | | | | (5 | ) |
Other Energy Delivery | | | 0.01 | | | | — | | | | — | | | | 5 | | | | — | | | | 5 | |
Competitive Transition Charge (CTC) Recoveries (6) | | | — | | | | 75 | | | | — | | | | (68 | ) | | | (7 | ) | | | — | |
Operating and Maintenance Expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Bad Debt (7) | | | 0.01 | | | | (2 | ) | | | 7 | | | | (1 | ) | | | — | | | | 4 | |
Labor, Contracting and Materials (8) | | | (0.04 | ) | | | (14 | ) | | | (7 | ) | | | (7 | ) | | | — | | | | (28 | ) |
Planned Nuclear Refueling Outages | | | — | | | | 1 | | | | — | | | | — | | | | — | | | | 1 | |
Other Operating and Maintenance (9) | | | — | | | | 7 | | | | (2 | ) | | | — | | | | (3 | ) | | | 2 | |
Pension and Non-Pension Postretirement Benefits (10) | | | (0.01 | ) | | | (2 | ) | | | (2 | ) | | | — | | | | (1 | ) | | | (5 | ) |
Depreciation and Amortization Expense (11) | | | (0.03 | ) | | | (17 | ) | | | (4 | ) | | | (2 | ) | | | 5 | | | | (18 | ) |
Scheduled CTC Amortization Expense (12) | | | 0.02 | | | | — | | | | — | | | | 15 | | | | — | | | | 15 | |
Income Taxes | | | — | | | | 8 | | | | (5 | ) | | | (13 | ) | | | 8 | | | | (2 | ) |
Interest Expense | | | — | | | | (5 | ) | | | (4 | ) | | | 7 | | | | 1 | | | | (1 | ) |
Other (13) | | | 0.01 | | | | 8 | | | | (2 | ) | | | — | | | | (1 | ) | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 0.96 | | | | 538 | | | | 85 | | | | 20 | | | | (12 | ) | | | 631 | |
| | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss)Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | (0.01 | ) | | | (4 | ) | | | — | | | | — | | | | — | | | | (4 | ) |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.17 | ) | | | (113 | ) | | | — | | | | — | | | | — | | | | (113 | ) |
Unrealized Gains Related to NDT Fund Investments (1) | | | 0.04 | | | | 26 | | | | — | | | | — | �� | | | — | | | | 26 | |
Retirement of Fossil Generating Units (2) | | | (0.03 | ) | | | (17 | ) | | | — | | | | — | | | | — | | | | (17 | ) |
JDR Acquisition Costs (14) | | | (0.01 | ) | | | (6 | ) | | | — | | | | — | | | | — | | | | (6 | ) |
Asset Retirement Obligation Reduction (15) | | | 0.01 | | | | — | | | | 6 | | | | 1 | | | | — | | | | 7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
2010 GAAP Earnings (Loss) | | $ | 0.79 | | | $ | 424 | | | $ | 91 | | | $ | 21 | | | $ | (12 | ) | | $ | 524 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Reflects the impact of unrealized gains in 2009 and 2010 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
| (2) | Reflects incremental accelerated depreciation, inventory write-downs and severance costs associated with the planned retirement of four fossil generating units. |
| (3) | Primarily reflects the impact of decreased planned and unplanned nuclear outage days in 2010, including Salem. |
| (4) | Reflects the impact of higher nuclear fuel prices. |
| (5) | Primarily reflects the impact of a decrease in realized market prices for the sale of energy. |
| (6) | Reflects decreased CTC revenues at PECO as scheduled in connection with the end of the transition period, which resulted in higher energy prices paid to Generation under the PPA. Generation and PECO’s marginal tax rate differences are reflected at Exelon Corporate. |
| (7) | Primarily reflects increased collection activities at ComEd. |
| (8) | Primarily reflects the impact of increased wages and incentive compensation benefits, as well as the impact of inflation related to contracting and materials expense. |
| (9) | Primarily reflects the 2010 impact of a nuclear insurance credit at Generation. |
| (10) | Primarily reflects the impact of a lower assumed discount rate used in 2010 as compared to 2009 to calculate the pension and other postretirement benefit obligations and costs. |
| (11) | Primarily reflects increased depreciation expense across the operating companies due to ongoing capital expenditures and the impact of a first quarter 2010 depreciation study at Generation. |
| (12) | Reflects decreased amortization expense of CTCs at PECO as scheduled in connection with the end of the transition period. |
| (13) | Primarily reflects realized gains associated with NDT funds at Generation as a result of favorable market conditions in 2010. |
| (14) | Reflects external costs incurred associated with Exelon’s acquisition of JDR (now known as Exelon Wind). |
| (15) | Reflects a decrease in ComEd and PECO’s asset retirement obligations primarily related to transmission and distribution substation assets. |
9
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating
Earnings to GAAP Earnings (in millions)
Twelve Months Ended December 31, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Exelon
Earnings per
Diluted Share | | | Generation | | | ComEd | | | PECO | | | Other | | | Exelon | |
2009 GAAP Earnings (Loss) | | $ | 4.09 | | | $ | 2,122 | | | $ | 374 | | | $ | 353 | | | $ | (142 | ) | | $ | 2,707 | |
| | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss)
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | 0.10 | | | | 62 | | | | 4 | | | | — | | | | — | | | | 66 | |
Mark-to-Market Impact of Economic Hedging Activities | | | (0.16 | ) | | | (110 | ) | | | — | | | | — | | | | — | | | | (110 | ) |
Unrealized Gains Related to NDT Fund Investments (1) | | | (0.19 | ) | | | (132 | ) | | | — | | | | — | | | | — | | | | (132 | ) |
Asset Retirement Obligation Reduction (2) | | | (0.05 | ) | | | (32 | ) | | | — | | | | — | | | | — | | | | (32 | ) |
City of Chicago Settlement with ComEd | | | 0.01 | | | | — | | | | 5 | | | | — | | | | — | | | | 5 | |
NRG Acquisition Costs (3) | | | 0.03 | | | | — | | | | — | | | | — | | | | 20 | | | | 20 | |
Impairment of Certain Generating Assets (4) | | | 0.20 | | | | 135 | | | | — | | | | — | | | | — | | | | 135 | |
2009 Restructuring Charges (5) | | | 0.03 | | | | 7 | | | | 13 | | | | 1 | | | | 1 | | | | 22 | |
Non-Cash Remeasurement of Income Tax Uncertainties and Reassessment of State Deferred Income Taxes (6) | | | (0.10 | ) | | | (38 | ) | | | (40 | ) | | | — | | | | 12 | | | | (66 | ) |
Costs Associated with Early Debt Retirements | | | 0.11 | | | | 44 | | | | — | | | | — | | | | 30 | | | | 74 | |
Retirement of Fossil Generating Units (7) | | | 0.05 | | | | 34 | | | | — | | | | — | | | | — | | | | 34 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2009 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 4.12 | | | | 2,092 | | | | 356 | | | | 354 | | | | (79 | ) | | | 2,723 | |
| | | | | | |
Year Over Year Effects on Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Generation Energy Margins, Excluding Mark-to-Market: | | | | | | | | | | | | | | | | | | | | | | | | |
Nuclear Output (8) | | | (0.02 | ) | | | (11 | ) | | | — | | | | — | | | | — | | | | (11 | ) |
Nuclear Fuel Costs (9) | | | (0.11 | ) | | | (70 | ) | | | — | | | | — | | | | — | | | | (70 | ) |
RPM Capacity Pricing | | | 0.19 | | | | 125 | | | | — | | | | — | | | | — | | | | 125 | |
Market and Portfolio Conditions (10) | | | (0.13 | ) | | | (86 | ) | | | — | | | | — | | | | — | | | | (86 | ) |
ComEd and PECO Margins: | | | | | | | | | | | | | | | | | | | | | | | | |
Weather | | | 0.16 | | | | — | | | | 54 | | | | 54 | | | | — | | | | 108 | |
Load | | | — | | | | — | | | | (2 | ) | | | 1 | | | | — | | | | (1 | ) |
Other Energy Delivery | | | (0.02 | ) | | | — | | | | (4 | ) | | | (10 | ) | | | — | | | | (14 | ) |
CTC Recoveries (11) | | | — | | | | (41 | ) | | | — | | | | 45 | | | | (4 | ) | | | — | |
Operating and Maintenance Expense: | | | | | | | | | | | | | | | | | | | | | | | | |
Bad Debt (12) | | | 0.04 | | | | — | | | | 24 | | | | 2 | | | | — | | | | 26 | |
Recovery of Prior Year Bad Debt Expense at ComEd (13) | | | 0.06 | | | | — | | | | 36 | | | | — | | | | — | | | | 36 | |
Labor, Contracting and Materials (14) | | | (0.07 | ) | | | (33 | ) | | | 5 | | | | (19 | ) | | | — | | | | (47 | ) |
Planned Nuclear Refueling Outages | | | (0.02 | ) | | | (11 | ) | | | — | | | | — | | | | — | | | | (11 | ) |
Other Operating and Maintenance (15) | | | (0.03 | ) | | | 15 | | | | (9 | ) | | | (11 | ) | | | (17 | ) | | | (22 | ) |
Pension and Non-Pension Postretirement Benefits (16) | | | (0.03 | ) | | | (14 | ) | | | (4 | ) | | | — | | | | 2 | | | | (16 | ) |
Depreciation and Amortization Expense (17) | | | (0.09 | ) | | | (58 | ) | | | (12 | ) | | | (7 | ) | | | 18 | | | | (59 | ) |
Scheduled CTC Amortization Expense (18) | | | (0.10 | ) | | | — | | | | — | | | | (67 | ) | | | — | | | | (67 | ) |
Income Taxes (19) | | | 0.05 | | | | 34 | | | | (11 | ) | | | (8 | ) | | | 18 | | | | 33 | |
Interest Expense (20) | | | 0.03 | | | | (30 | ) | | | (1 | ) | | | 36 | | | | 15 | | | | 20 | |
Other (21) | | | 0.03 | | | | 16 | | | | 20 | | | | (15 | ) | | | 1 | | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss) | | | 4.06 | | | | 1,928 | | | | 452 | | | | 355 | | | | (46 | ) | | | 2,689 | |
| | | | | | |
2010 Adjusted (non-GAAP) Operating Earnings (Loss)
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
2007 Illinois Electric Rate Settlement | | | (0.02 | ) | | | (12 | ) | | | (1 | ) | | | — | | | | — | | | | (13 | ) |
Mark-to-Market Impact of Economic Hedging Activities | | | 0.08 | | | | 52 | | | | — | | | | — | | | | — | | | | 52 | |
Unrealized Gains Related to NDT Fund Investments (1) | | | 0.08 | | | | 52 | | | | — | | | | — | | | | — | | | | 52 | |
City of Chicago Settlement with ComEd | | | — | | | | — | | | | (2 | ) | | | — | | | | — | | | | (2 | ) |
Asset Retirement Obligation Reduction (2) | | | 0.01 | | | | — | | | | 6 | | | | 1 | | | | — | | | | 7 | |
Retirement of Fossil Generating Units (7) | | | (0.08 | ) | | | (50 | ) | | | — | | | | — | | | | — | | | | (50 | ) |
Non-Cash Charge Resulting From Health Care Legislation (22) | | | (0.10 | ) | | | (26 | ) | | | (12 | ) | | | (10 | ) | | | (17 | ) | | | (65 | ) |
Non-Cash Remeasurement of Income Tax Uncertainties (6) | | | (0.10 | ) | | | 70 | | | | (106 | ) | | | (22 | ) | | | (7 | ) | | | (65 | ) |
Impairment of Certain Emissions Allowances (23) | | | (0.05 | ) | | | (35 | ) | | | — | | | | — | | | | — | | | | (35 | ) |
JDR Acquisition Costs (24) | | | (0.01 | ) | | | (7 | ) | | | — | | | | — | | | | — | | | | (7 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
2010 GAAP Earnings (Loss) | | $ | 3.87 | | | $ | 1,972 | | | $ | 337 | | | $ | 324 | | | $ | (70 | ) | | $ | 2,563 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Reflects the impact of unrealized gains in 2009 and 2010 on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
| (2) | Reflects a decrease in 2009 of Generation’s decommissioning obligation liability primarily related to the former AmerGen nuclear plants and a decrease in 2010 of ComEd and PECO’s asset retirement obligations primarily related to transmission and distribution substation assets. |
| (3) | Reflects external costs incurred in 2009 associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (4) | Reflects the impact of the impairment of certain of Generation’s Texas plants. |
| (5) | Reflects severance expense associated with the elimination of management and staff positions in 2009. |
| (6) | For 2009, reflects the impacts of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating units and a reassessment of anticipated apportionment of Exelon’s income. For 2010, reflects the impact of a remeasurement of income tax uncertainties related to ComEd’s 1999 sale of fossil generating assets and related to CTCs received by PECO. |
| (7) | Reflects incremental accelerated depreciation, inventory write-downs and severance costs associated with the planned retirement of four fossil generating units. |
| (8) | Primarily reflects the impact of increased unplanned nuclear outage days in the Mid-Atlantic region in 2010, including Salem. |
| (9) | Reflects the impact of higher nuclear fuel prices. |
| (10) | Primarily reflects the impact of a decrease in realized market prices for the sale of energy. |
| (11) | Reflects increased CTC revenues at PECO resulting in lower energy prices paid to Generation under the PPA. Generation and PECO’s marginal tax rate differences are reflected at Exelon Corporate. |
| (12) | Primarily reflects increased collection activities at ComEd. |
| (13) | Reflects a credit for the recovery of 2008 and 2009 bad debt expense pursuant to the ICC’s February 2010 approval of a bad debt rider, partially offset by a contribution mandated by Illinois legislation. |
| (14) | Primarily reflects the impact of increased wages and incentive compensation, as well as the impact of inflation related to contracting and materials expense (exclusive of incremental storm costs as disclosed in number 15 below). |
| (15) | Primarily reflects increased storm costs in the ComEd and PECO service territories and increased costs associated with Exelon Transmission Company at Corporate, partially offset by reduced stock-based compensation costs across the operating companies and the 2010 impact of a nuclear insurance credit at Generation. |
| (16) | Primarily reflects the impact of a lower assumed discount rate used in 2010 as compared to 2009 to calculate the pension and other postretirement benefit obligations and costs. |
| (17) | Primarily reflects increased depreciation expense across the operating companies due to ongoing capital expenditures and the impact of a first quarter 2010 depreciation study at Generation. |
| (18) | Reflects increased scheduled amortization expense of CTCs at PECO, which became fully amortized at the end of the transition period on December 31, 2010. |
| (19) | Primarily reflects an increase in Generation’s tax benefits associated with an increase in the manufacturing deduction rate, partially offset by the incremental impact on the 2010 manufacturing tax deduction associated with the pension contribution to be made in the first quarter of 2011. |
| (20) | Primarily reflects lower interest expense at PECO and Exelon Corporate due to lower outstanding debt, partially offset by higher interest expense at Generation due to higher outstanding debt. |
| (21) | Primarily reflects realized gains associated with NDT funds at Generation as a result of favorable market conditions in 2010 and projected refunds related to Illinois electric distribution taxes at ComEd, partially offset by increased gross receipts tax at PECO. |
| (22) | Reflects a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (23) | Reflects the impairment of certain SO2 emission allowances as a result of declining market prices since the release of the EPA’s proposed Transport Rule during the third quarter of 2010. |
| (24) | Reflects external costs incurred associated with Exelon’s acquisition of JDR (now known as Exelon Wind). |
10
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Generation | |
| | | Three Months Ended December 31, 2010 | | | Three Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | 2,596 | | | $ | 6 | (b) | | $ | 2,602 | | | $ | 2,278 | | | $ | 20 | (b) | | $ | 2,298 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 602 | | | | (145 | )(c) | | | 457 | | | | 375 | | | | (36 | )(c) | | | 339 | |
Fuel | | | 418 | | | | (41 | )(c) | | | 377 | | | | 300 | | | | 78 | (c) | | | 378 | |
Operating and maintenance | | | 731 | | | | (13 | )(d),(e) | | | 718 | | | | 727 | | | | (24 | )(e) | | | 703 | |
Depreciation and amortization | | | 129 | | | | (23 | )(e) | | | 106 | | | | 110 | | | | (32 | )(e) | | | 78 | |
Taxes other than income | | | 56 | | | | — | | | | 56 | | | | 55 | | | | — | | | | 55 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,936 | | | | (222 | ) | | | 1,714 | | | | 1,567 | | | | (14 | ) | | | 1,553 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 660 | | | | 228 | | | | 888 | | | | 711 | | | | 34 | | | | 745 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (44 | ) | | | — | | | | (44 | ) | | | (36 | ) | | | — | | | | (36 | ) |
Other, net | | | 118 | | | | (83 | )(f) | | | 35 | | | | 50 | | | | (28 | )(f),(g) | | | 22 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | 74 | | | | (83 | ) | | | (9 | ) | | | 14 | | | | (28 | ) | | | (14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 734 | | | | 145 | | | | 879 | | | | 725 | | | | 6 | | | | 731 | |
Income taxes | | | 310 | | |
|
31 | (b),(c),(d),
(e),(f) | | | 341 | | | | 300 | | |
|
(10) | (b),(c),(e),(f),
(g) | | | 290 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 424 | | | $ | 114 | | | $ | 538 | | | $ | 425 | | | $ | 16 | | | $ | 441 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Twelve Months Ended December 31, 2010 | | | Twelve Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | 10,025 | | | $ | 21 | (b) | | $ | 10,046 | | | $ | 9,703 | | | $ | 98 | (b) | | $ | 9,801 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 1,853 | | | | (3 | )(c) | | | 1,850 | | | | 1,338 | | | | 94 | (c) | | | 1,432 | |
Fuel | | | 1,610 | | | | 32 | (c),(h) | | | 1,642 | | | | 1,594 | | | | 87 | (c) | | | 1,681 | |
Operating and maintenance | | | 2,812 | | | | (18 | )(d),(e),(i) | | | 2,794 | | | | 2,938 | | | | (207 | )(e),(k),(l),(m) | | | 2,731 | |
Depreciation and amortization | | | 474 | | | | (80 | )(e) | | | 394 | | | | 333 | | | | (32 | )(e) | | | 301 | |
Taxes other than income | | | 230 | | | | — | | | | 230 | | | | 205 | | | | — | | | | 205 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 6,979 | | | | (69 | ) | | | 6,910 | | | | 6,408 | | | | (58 | ) | | | 6,350 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 3,046 | | | | 90 | | | | 3,136 | | | | 3,295 | | | | 156 | | | | 3,451 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (153 | ) | | | — | | | | (153 | ) | | | (113 | ) | | | 2 | (g) | | | (111 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (3 | ) | | | — | | | | (3 | ) |
Other, net | | | 257 | | | | (155 | )(f) | | | 102 | | | | 376 | | | | (320 | )(f),(g),(n) | | | 56 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | 104 | | | | (155 | ) | | | (51 | ) | | | 260 | | | | (318 | ) | | | (58 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 3,150 | | | | (65 | ) | | | 3,085 | | | | 3,555 | | | | (162 | ) | | | 3,393 | |
Income taxes | | | 1,178 | | |
|
(21) | (b),(c),(d),(e),
(f),(h),(i),(j) | | | 1,157 | | | | 1,433 | | |
|
(132) | (b),(c),(e),
(f),(g),(k),(l),
(m),(n) | | | 1,301 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 1,972 | | | $ | (44 | ) | | $ | 1,928 | | | $ | 2,122 | | | $ | (30 | ) | | $ | 2,092 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (c) | Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities. |
| (d) | Adjustment to exclude costs associated with Exelon’s acquisition of JDR (now known as Exelon Wind). |
| (e) | Adjustment to exclude costs associated with the planned retirement of fossil generating units. |
| (f) | Adjustment to exclude unrealized gains in 2010 and 2009 associated with Generation’s NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. |
| (g) | Adjustment to exclude costs associated with early debt retirements. |
| (h) | Adjustment to exclude a non-cash charge for the impairment of certain SO2 emission allowances as a result of declining market prices since the release of the EPA’s proposed Transport Rule in the third quarter of 2010. |
| (i) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (j) | Adjustment to exclude a 2010 remeasurement of income tax uncertainties. |
| (k) | Adjustment to exclude a decrease in 2009 in Generation’s decommissioning obligation. |
| (l) | Adjustment to exclude 2009 charges associated with the elimination of management and staff positions. |
| (m) | Adjustment to exclude a non-cash charge for the impairment of certain of Generation’s Texas plants. |
| (n) | Adjustment to exclude a change in state deferred income taxes. |
11
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | ComEd | |
| | | Three Months Ended December 31, 2010 | | | Three Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | 1,372 | | | $ | — | | | $ | 1,372 | | | $ | 1,357 | | | $ | 12 | (d),(e) | | $ | 1,369 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 671 | | | | — | | | | 671 | | | | 692 | | | | — | | | | 692 | |
Operating and maintenance | | | 247 | | | | 10 | (c) | | | 257 | | | | 232 | | | | — | | | | 232 | |
Operating and maintenance
for regulatory required
programs (b) | | | 27 | | | | — | | | | 27 | | | | 19 | | | | — | | | | 19 | |
Depreciation and amortization | | | 130 | | | | — | | | | 130 | | | | 123 | | | | — | | | | 123 | |
Taxes other than income | | | 68 | | | | — | | | | 68 | | | | 67 | | | | — | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,143 | | | | 10 | | | | 1,153 | | | | 1,133 | | | | — | | | | 1,133 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 229 | | | | (10 | ) | | | 219 | | | | 224 | | | | 12 | | | | 236 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (86 | ) | | | — | | | | (86 | ) | | | (78 | ) | | | — | | | | (78 | ) |
Other, net | | | 10 | | | | — | | | | 10 | | | | 11 | | | | — | | | | 11 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and
deductions | | | (76 | ) | | | — | | | | (76 | ) | | | (67 | ) | | | — | | | | (67 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 153 | | | | (10 | ) | | | 143 | | | | 157 | | | | 12 | | | | 169 | |
Income taxes | | | 62 | | | | (4 | )(c) | | | 58 | | | | 59 | | | | 5 | (d),(e) | | | 64 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 91 | | | $ | (6 | ) | | $ | 85 | | | $ | 98 | | | $ | 7 | | | $ | 105 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Twelve Months Ended December 31, 2010 | | | Twelve Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | 6,204 | | | $ | 4 | (d),(e) | | $ | 6,208 | | | $ | 5,774 | | | $ | 16 | (d),(e) | | $ | 5,790 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 3,307 | | | | — | | | | 3,307 | | | | 3,065 | | | | — | | | | 3,065 | |
Operating and maintenance | | | 975 | | | | 7 | (c),(f) | | | 982 | | | | 1,028 | | | | (20 | )(d),(h) | | | 1,008 | |
Operating and maintenance
for regulatory required
programs (b) | | | 94 | | | | | | | | 94 | | | | 63 | | | | — | | | | 63 | |
Depreciation and amortization | | | 516 | | | | — | | | | 516 | | | | 494 | | | | — | | | | 494 | |
Taxes other than income | | | 256 | | | | — | | | | 256 | | | | 281 | | | | — | | | | 281 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 5,148 | | | | 7 | | | | 5,155 | | | | 4,931 | | | | (20 | ) | | | 4,911 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 1,056 | | | | (3 | ) | | | 1,053 | | | | 843 | | | | 36 | | | | 879 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (386 | ) | | | 59 | (g) | | | (327 | ) | | | (319 | ) | | | (6 | )(g) | | | (325 | ) |
Other, net | | | 24 | | | | — | | | | 24 | | | | 79 | | | | (60 | )(g) | | | 19 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and
deductions | | | (362 | ) | | | 59 | | | | (303 | ) | | | (240 | ) | | | (66 | ) | | | (306 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 694 | | | | 56 | | | | 750 | | | | 603 | | | | (30 | ) | | | 573 | |
Income taxes | | | 357 | | |
|
(59 | (c),(d),
)(e),(f),(g) | | | 298 | | | | 229 | | |
|
(12 | (d),(e),
)(g),(h) | | | 217 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 337 | | | $ | 115 | | | $ | 452 | | | $ | 374 | | | $ | (18 | ) | | $ | 356 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude a decrease in 2010 in ComEd’s asset retirement obligation. |
| (d) | Adjustment to exclude the impact of the 2007 Illinois electric rate settlement. |
| (e) | Adjustment to exclude costs associated with ComEd’s 2007 settlement agreement with the City of Chicago. |
| (f) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (g) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties. |
| (h) | Adjustment to exclude 2009 charges associated with the elimination of management and staff positions. |
12
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | PECO | |
| | | Three Months Ended December 31, 2010 | | | Three Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | 1,299 | | | $ | — | | | $ | 1,299 | | | $ | 1,266 | | | $ | — | | | $ | 1,266 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 652 | | | | — | | | | 652 | | | | 532 | | | | — | | | | 532 | |
Fuel | | | 123 | | | | — | | | | 123 | | | | 126 | | | | — | | | | 126 | |
Operating and maintenance | | | 172 | | | | 1 | (c) | | | 173 | | | | 159 | | | | — | | | | 159 | |
Operating and maintenance for regulatory required programs (b) | | | 17 | | | | — | | | | 17 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 201 | | | | — | | | | 201 | | | | 225 | | | | — | | | | 225 | |
Taxes other than income | | | 64 | | | | — | | | | 64 | | | | 64 | | | | — | | | | 64 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 1,229 | | | | 1 | | | | 1,230 | | | | 1,106 | | | | — | | | | 1,106 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 70 | | | | (1 | ) | | | 69 | | | | 160 | | | | — | | | | 160 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (34 | ) | | | — | | | | (34 | ) | | | (42 | ) | | | — | | | | (42 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (5 | ) | | | — | | | | (5 | ) |
Other, net | | | 2 | | | | — | | | | 2 | | | | 5 | | | | — | | | | 5 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (32 | ) | | | — | | | | (32 | ) | | | (42 | ) | | | — | | | | (42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 38 | | | | (1 | ) | | | 37 | | | | 118 | | | | — | | | | 118 | |
Income taxes | | | 17 | | | | — | (c) | | | 17 | | | | 40 | | | | — | | | | 40 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 21 | | | $ | (1 | ) | | $ | 20 | | | $ | 78 | | | $ | — | | | $ | 78 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Twelve Months Ended December 31, 2010 | | | Twelve Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | 5,519 | | | $ | — | | | $ | 5,519 | | | $ | 5,311 | | | $ | — | | | $ | 5,311 | |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | 2,361 | | | | — | | | | 2,361 | | | | 2,274 | | | | — | | | | 2,274 | |
Fuel | | | 401 | | | | — | | | | 401 | | | | 472 | | | | — | | | | 472 | |
Operating and maintenance | | | 680 | | | | (1 | )(c),(d) | | | 679 | | | | 640 | | | | (3 | )(f) | | | 637 | |
Operating and maintenance for regulatory required programs (b) | | | 53 | | | | — | | | | 53 | | | | — | | | | — | | | | — | |
Depreciation and amortization | | | 1,060 | | | | — | | | | 1,060 | | | | 952 | | | | — | | | | 952 | |
Taxes other than income | | | 303 | | | | — | | | | 303 | | | | 276 | | | | — | | | | 276 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | 4,858 | | | | (1 | ) | | | 4,857 | | | | 4,614 | | | | (3 | ) | | | 4,611 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating income | | | 661 | | | | 1 | | | | 662 | | | | 697 | | | | 3 | | | | 700 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (193 | ) | | | 36 | (e) | | | (157 | ) | | | (187 | ) | | | — | | | | (187 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (24 | ) | | | — | | | | (24 | ) |
Other, net | | | 8 | | | | 2 | (e) | | | 10 | | | | 13 | | | | — | | | | 13 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (185 | ) | | | 38 | | | | (147 | ) | | | (198 | ) | | | — | | | | (198 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Income before income taxes | | | 476 | | | | 39 | | | | 515 | | | | 499 | | | | 3 | | | | 502 | |
Income taxes | | | 152 | | | | 8 | (c),(d),(e) | | | 160 | | | | 146 | | | | 2 | (f) | | | 148 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 324 | | | $ | 31 | | | $ | 355 | | | $ | 353 | | | $ | 1 | | | $ | 354 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Includes amounts for various legislative and/or regulatory programs that are recoverable from customers on a full and current basis through a reconcilable automatic adjustment clause. An equal and offsetting amount has been reflected in operating revenues. |
| (c) | Adjustment to exclude a decrease in 2010 PECO’s asset retirement obligation. |
| (d) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (e) | Adjustment to exclude a 2010 remeasurement of income tax uncertainties. |
| (f) | Adjustment to exclude 2009 charges associated with the elimination of management and staff positions. |
13
EXELON CORPORATION
Reconciliation of Adjusted (non-GAAP) Operating Earnings to
GAAP Consolidated Statements of Operations
(unaudited)
(in millions)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Other | |
| | | Three Months Ended December 31, 2010 | | | Three Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | (773 | ) | | $ | — | | | $ | (773 | ) | | $ | (785 | ) | | $ | — | | | $ | (785 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (773 | ) | | | — | | | | (773 | ) | | | (784 | ) | | | — | | | | (784 | ) |
Fuel | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
Operating and maintenance | | | 10 | | | | — | | | | 10 | | | | 2 | | | | — | | | | 2 | |
Depreciation and amortization | | | 5 | | | | — | | | | 5 | | | | 16 | | | | — | | | | 16 | |
Taxes other than income | | | 5 | | | | — | | | | 5 | | | | 1 | | | | — | | | | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | (753 | ) | | | — | | | | (753 | ) | | | (766 | ) | | | — | | | | (766 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating loss | | | (20 | ) | | | — | | | | (20 | ) | | | (19 | ) | | | — | | | | (19 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (19 | ) | | | — | | | | (19 | ) | | | (20 | ) | | | — | | | | (20 | ) |
Loss in equity method investments | | | — | | | | — | | | | — | | | | (1 | ) | | | — | | | | (1 | ) |
Other, net | | | 5 | | | | — | | | | 5 | | | | (6 | ) | | | 10 | (b) | | | 4 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (14 | ) | | | — | | | | (14 | ) | | | (27 | ) | | | 10 | | | | (17 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss before income taxes | | | (34 | ) | | | — | | | | (34 | ) | | | (46 | ) | | | 10 | | | | (36 | ) |
Income taxes | | | (22 | ) | | | — | | | | (22 | ) | | | (26 | ) | | | 4 | (b) | | | (22 | ) |
| | | | | | | | | | | | | | �� | | | | | | | | | | |
Net loss | | $ | (12 | ) | | $ | — | | | $ | (12 | ) | | $ | (20 | ) | | $ | 6 | | | $ | (14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Twelve Months Ended December 31, 2010 | | | Twelve Months Ended December 31, 2009 | |
| | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | | | GAAP (a) | | | Adjustments | | | Adjusted Non-
GAAP | |
Operating revenues | | $ | (3,104 | ) | | $ | — | | | $ | (3,104 | ) | | $ | (3,469 | ) | | $ | — | | | $ | (3,469 | ) |
| | | | | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased power | | | (3,096 | ) | | | — | | | | (3,096 | ) | | | (3,462 | ) | | | — | | | | (3,462 | ) |
Fuel | | | (1 | ) | | | — | | | | (1 | ) | | | — | | | | — | | | | — | |
Operating and maintenance | | | (14 | ) | | | 8 | (c) | | | (6 | ) | | | 6 | | | | (35 | )(e),(f) | | | (29 | ) |
Depreciation and amortization | | | 25 | | | | — | | | | 25 | | | | 55 | | | | — | | | | 55 | |
Taxes other than income | | | 19 | | | | — | | | | 19 | | | | 16 | | | | — | | | | 16 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total operating expenses | | | (3,067 | ) | | | 8 | | | | (3,059 | ) | | | (3,385 | ) | | | (35 | ) | | | (3,420 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Operating loss | | | (37 | ) | | | (8 | ) | | | (45 | ) | | | (84 | ) | | | 35 | | | | (49 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Other income and deductions | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | (85 | ) | | | 8 | (d) | | | (77 | ) | | | (112 | ) | | | 16 | (b),(d) | | | (96 | ) |
Other, net | | | 23 | | | | — | | | | 23 | | | | (42 | ) | | | 56 | (b),(d) | | | 14 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total other income and deductions | | | (62 | ) | | | 8 | | | | (54 | ) | | | (154 | ) | | | 72 | | | | (82 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Loss before income taxes | | | (99 | ) | | | — | | | | (99 | ) | | | (238 | ) | | | 107 | | | | (131 | ) |
Income taxes | | | (29 | ) | | | (24 | )(c),(d) | | | (53 | ) | | | (96 | ) | | | 44 | (b),(d),(e),(f) | | | (52 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net loss | | $ | (70 | ) | | $ | 24 | | | $ | (46 | ) | | $ | (142 | ) | | $ | 63 | | | $ | (79 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Results reported in accordance with GAAP. |
| (b) | Adjustment to exclude costs associated with early debt retirements. |
| (c) | Adjustment to exclude a non-cash charge related to the passage of Federal health care legislation that reduces the deductibility of retiree prescription drug benefits for Federal income tax purposes to the extent they are reimbursed under Medicare Part D. |
| (d) | Adjustment to exclude 2010 and 2009 remeasurements of income tax uncertainties. |
| (e) | Adjustment to exclude external costs associated with Exelon’s proposed acquisition of NRG, which was terminated in July 2009. |
| (f) | Adjustment to exclude 2009 charges associated with the elimination of management and staff positions. |
14
EXELON CORPORATION
Exelon Generation Statistics
| | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | |
| | | Dec. 31, 2010 | | | Sept. 30, 2010 | | | Jun. 30, 2010 | | | Mar. 31, 2010 | | | Dec. 31, 2009 | |
Supply (in GWhs) | | | | | | | | | | | | | | | | | | | | |
Nuclear Generation | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic (a) | | | 11,974 | | | | 12,076 | | | | 11,691 | | | | 11,776 | | | | 11,137 | |
Midwest | | | 23,141 | | | | 23,675 | | | | 23,344 | | | | 22,333 | | | | 22,472 | |
| | | | | | | | | | | | | | | | | | | | |
Total Nuclear Generation | | | 35,115 | | | | 35,751 | | | | 35,035 | | | | 34,109 | | | | 33,609 | |
| | | | | |
Fossil and Renewables | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic (b) | | | 2,115 | | | | 2,582 | | | | 2,175 | | | | 2,564 | | | | 1,986 | |
Midwest | | | 45 | | | | 16 | | | | 7 | | | | — | | | | — | |
South and West | | | 93 | | | | 691 | | | | 310 | | | | 119 | | | | 48 | |
| | | | | | | | | | | | | | | | | | | | |
Total Fossil and Renewables | | | 2,253 | | | | 3,289 | | | | 2,492 | | | | 2,683 | | | | 2,034 | |
| | | | | |
Purchased Power | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic | | | 442 | | | | 599 | | | | 414 | | | | 463 | | | | 342 | |
Midwest | | | 1,776 | | | | 1,774 | | | | 1,568 | | | | 1,914 | | | | 1,991 | |
South and West | | | 2,632 | | | | 4,084 | | | | 2,695 | | | | 2,701 | | | | 2,851 | |
| | | | | | | | | | | | | | | | | | | | |
Total Purchased Power | | | 4,850 | | | | 6,457 | | | | 4,677 | | | | 5,078 | | | | 5,184 | |
| | | | | |
Total Supply by Region | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic | | | 14,531 | | | | 15,257 | | | | 14,280 | | | | 14,803 | | | | 13,465 | |
Midwest | | | 24,962 | | | | 25,465 | | | | 24,919 | | | | 24,247 | | | | 24,463 | |
South and West | | | 2,725 | | | | 4,775 | | | | 3,005 | | | | 2,820 | | | | 2,899 | |
| | | | | | | | | | | | | | | | | | | | |
| | | 42,218 | | | | 45,497 | | | | 42,204 | | | | 41,870 | | | | 40,827 | |
| | | | | | | | | | | | | | | | | | | | |
| |
| | | Three Months Ended | |
| | | Dec. 31, 2010 | | | Sept. 30, 2010 | | | Jun. 30, 2010 | | | Mar. 31, 2010 | | | Dec. 31, 2009 | |
Electric Sales (in GWhs) | | | | | | | | | | | | | | | | | | | | |
ComEd (c) | | | — | | | | — | | | | 1,895 | | | | 3,428 | | | | 3,439 | |
PECO | | | 9,756 | | | | 11,976 | | | | 10,044 | | | | 10,228 | | | | 9,588 | |
Market and Retail (c) | | | 32,462 | | | | 33,521 | | | | 30,265 | | | | 28,214 | | | | 27,800 | |
| | | | | | | | | | | | | | | | | | | | |
Total Electric Sales (d)(e) | | | 42,218 | | | | 45,497 | | | | 42,204 | | | | 41,870 | | | | 40,827 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Average Margin ($/MWh) (f)(g) | | | | | | | | | | | | | | | | | | | | |
Mid-Atlantic | | $ | 51.75 | | | $ | 36.97 | | | $ | 40.83 | | | $ | 41.41 | | | $ | 43.15 | |
Midwest | | | 41.14 | | | | 41.00 | | | | 40.78 | | | | 41.00 | | | | 41.98 | |
South and West | | | (10.64 | ) | | | (2.30 | ) | | | (14.31 | ) | | | (16.67 | ) | | | (14.49 | ) |
Average Margin - Overall Portfolio | | $ | 41.45 | | | $ | 35.11 | | | $ | 36.87 | | | $ | 37.26 | | | $ | 38.36 | |
| | | | | |
Around-the-clock Market Prices ($/MWh) (h) | | | | | | | | | | | | | | | | | | | | |
PJM West Hub | | $ | 43.65 | | | $ | 52.25 | | | $ | 43.21 | | | $ | 44.54 | | | $ | 37.31 | |
NiHub | | | 27.26 | | | | 38.32 | | | | 32.35 | | | | 34.47 | | | | 29.61 | |
ERCOT North Spark Spread | | | (0.69 | ) | | | 8.25 | | | | 1.52 | | | | (0.02 | ) | | | (1.34 | ) |
| (a) | Includes Generation’s proportionate share of the output of its nuclear generating plants, including Salem. |
| (b) | Includes New England generation. |
| (c) | ComEd line item represents sales under the 2006 ComEd Auction. Settlements of the ComEd swap and sales under the Request for Proposal (RFP) are included within Market and Retail sales. In addition, renewable energy credit sales to affiliates have been included within Market and Retail sales. |
| (d) | Excludes retail gas activity, trading portfolio and other operating revenue. |
| (e) | Total sales do not include trading volume of 740 GWhs, 1,077 GWhs, 889 GWhs, 920 GWhs and 1,599 GWhs for the three months ended December 31, 2010, September 30, 2010, June 30, 2010, March 31, 2010 and December 31, 2009, respectively. |
| (f) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
| (g) | Results of transactions with PECO and ComEd are included in the Mid-Atlantic and Midwest regions, respectively. |
| (h) | Represents the average for the quarter. |
15
EXELON CORPORATION
Exelon Generation Statistics
Twelve Months Ended December 31, 2010 and 2009
| | | | | | | | |
| | | December 31,
2010 | | | December 31,
2009 | |
Supply (in GWhs) | | | | | | | | |
Nuclear Generation | | | | | | | | |
Mid-Atlantic (a) | | | 47,517 | | | | 47,866 | |
Midwest | | | 92,493 | | | | 91,804 | |
| | | | | | | | |
Total Nuclear Generation | | | 140,010 | | | | 139,670 | |
| | |
Fossil and Renewables | | | | | | | | |
Mid-Atlantic (b) | | | 9,436 | | | | 8,938 | |
Midwest | | | 68 | | | | 4 | |
South and West | | | 1,213 | | | | 1,247 | |
| | | | | | | | |
Total Fossil and Renewables | | | 10,717 | | | | 10,189 | |
| | |
Purchased Power | | | | | | | | |
Mid-Atlantic | | | 1,918 | | | | 1,747 | |
Midwest | | | 7,032 | | | | 7,738 | |
South and West | | | 12,112 | | | | 13,721 | |
| | | | | | | | |
Total Purchased Power | | | 21,062 | | | | 23,206 | |
| | |
Total Supply by Region | | | | | | | | |
Mid-Atlantic | | | 58,871 | | | | 58,551 | |
Midwest | | | 99,593 | | | | 99,546 | |
South and West | | | 13,325 | | | | 14,968 | |
| | | | | | | | |
| | | 171,789 | | | | 173,065 | |
| | | | | | | | |
| | |
| | | December 31,
2010 | | | December 31,
2009 | |
Electric Sales (in GWhs) | | | | | | | | |
ComEd (c) | | | 5,323 | | | | 16,830 | |
PECO | | | 42,003 | | | | 39,897 | |
Market and Retail (c) | | | 124,463 | | | | 116,338 | |
| | | | | | | | |
Total Electric Sales (d)(e) | | | 171,789 | | | | 173,065 | |
| | | | | | | | |
| | |
Average Margin ($/MWh) (f)(g) | | | | | | | | |
Mid-Atlantic | | $ | 42.67 | | | $ | 44.03 | |
Midwest | | | 40.98 | | | | 41.67 | |
South and West | | | (9.83 | ) | | | (7.82 | ) |
| | |
Average Margin - Overall Portfolio | | $ | 37.62 | | | $ | 38.20 | |
| | |
Around-the-clock Market Prices ($/MWh) (h) | | | | | | | | |
PJM West Hub | | $ | 45.93 | | | $ | 38.30 | |
NiHub | | | 33.09 | | | | 28.85 | |
ERCOT North Spark Spread | | | 2.31 | | | | 0.35 | |
| (a) | Includes Generation’s proportionate share of the output of its nuclear generating plants, including Salem. |
| (b) | Includes New England generation. |
| (c) | ComEd line item represents sales under the 2006 ComEd Auction. Settlements of the ComEd swap and sales under the RFP are included within Market and Retail sales. In addition, renewable energy credit sales to affiliates have been included within Market and Retail sales. |
| (d) | Excludes retail gas activity, trading portfolio and other operating revenue. |
| (e) | Total sales do not include trading volume of 3,625 GWhs and 7,578 GWhs for the years ended December 31, 2010 and 2009, respectively. |
| (f) | Excludes the mark-to-market impact of Generation’s economic hedging activities. |
| (g) | Results of transactions with PECO and ComEd are included in the Mid-Atlantic and Midwest regions, respectively. |
| (h) | Represents the average for the years ended December 31, 2010 and 2009, respectively. |
16
EXELON CORPORATION
ComEd Statistics
Three Months Ended December 31, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Electric Deliveries (in GWhs) | | | Revenue (in millions) | |
| | | 2010 | | | 2009 | | | % Change | | | Weather-
Normal
% Change | | | 2010 | | | 2009 | | | % Change | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 6,393 | | | | 6,541 | | | | (2.3 | )% | | | (4.1 | )% | | $ | 761 | | | $ | 741 | | | | 2.7 | % |
Small Commercial & Industrial | | | 7,929 | | | | 7,897 | | | | 0.4 | % | | | (1.5 | )% | | | 366 | | | | 378 | | | | (3.2 | )% |
Large Commercial & Industrial | | | 6,725 | | | | 6,505 | | | | 3.4 | % | | | 1.9 | % | | | 91 | | | | 93 | | | | (2.2 | )% |
Public Authorities & Electric Railroads | | | 346 | | | | 329 | | | | 5.2 | % | | | 2.9 | % | | | 14 | | | | 15 | | | | (6.7 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Retail | | | 21,393 | | | | 21,272 | | | | 0.6 | % | | | (1.2 | )% | | | 1,232 | | | | 1,227 | | | | 0.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | | | | | | | 140 | | | | 130 | | | | 7.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | | | | | | | $ | 1,372 | | | $ | 1,357 | | | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | | | | | | | $ | 671 | | | $ | 692 | | | | (3.0 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % Change | |
Heating and Cooling Degree-Days | | 2010 | | | 2009 | | | Normal | | | From 2009 | | | From Normal | |
Heating Degree-Days | | | 2,292 | | | | 2,264 | | | | 2,278 | | | | 1.2 | % | | | 0.6 | % |
Cooling Degree-Days | | | 15 | | | | — | | | | 7 | | | | n/a | | | | 114.3 | % |
Twelve Months Ended December 31, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Electric Deliveries (in GWhs) | | | Revenue (in millions) | |
| | | 2010 | | | 2009 | | | % Change | | | Weather-
Normal
% Change | | | 2010 | | | 2009 | | | % Change | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 29,171 | | | | 26,621 | | | | 9.6 | % | | | (1.2 | )% | | $ | 3,549 | | | $ | 3,115 | | | | 13.9 | % |
Small Commercial & Industrial | | | 32,904 | | | | 32,234 | | | | 2.1 | % | | | (0.6 | )% | | | 1,639 | | | | 1,660 | | | | (1.3 | )% |
Large Commercial & Industrial | | | 27,717 | | | | 26,668 | | | | 3.9 | % | | | 2.6 | % | | | 397 | | | | 387 | | | | 2.6 | % |
Public Authorities & Electric Railroads | | | 1,273 | | | | 1,237 | | | | 2.9 | % | | | 2.4 | % | | | 62 | | | | 57 | | | | 8.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Retail | | | 91,065 | | | | 86,760 | | | | 5.0 | % | | | 0.2 | % | | | 5,647 | | | | 5,219 | | | | 8.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | | | | | | | 557 | | | | 555 | | | | 0.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | | | | | | | $ | 6,204 | | | $ | 5,774 | | | | 7.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | | | | | | | $ | 3,307 | | | $ | 3,065 | | | | 7.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % Change | |
Heating and Cooling Degree-Days | | 2010 | | | 2009 | | | Normal | | | From 2009 | | | From Normal | |
Heating Degree-Days | | | 5,991 | | | | 6,429 | | | | 6,362 | | | | (6.8 | )% | | | (5.8 | )% |
Cooling Degree-Days | | | 1,181 | | | | 589 | | | | 855 | | | | 100.5 | % | | | 38.1 | % |
| | | | | |
Number of Electric Customers | | 2010 | | | 2009 | | | | | | | | | | |
Residential | | | 3,438,677 | | | | 3,425,570 | | | | | | | | | | | | | |
Small Commercial & Industrial | | | 363,393 | | | | 360,779 | | | | | | | | | | | | | |
Large Commercial & Industrial | | | 2,005 | | | | 1,985 | | | | | | | | | | | | | |
Public Authorities & Electric Railroads | | | 5,078 | | | | 5,008 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 3,809,153 | | | | 3,793,342 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| (a) | Reflects delivery revenues and volumes from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy. |
| (b) | Other revenue primarily includes transmission revenue from PJM Interconnection, LLC (PJM). |
17
EXELON CORPORATION
PECO Statistics
Three Months Ended December 31, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Electric and Gas Deliveries | | | Revenue (in millions) | |
| | | 2010 | | | 2009 | | | % Change | | | Weather-
Normal
% Change | | | 2010 | | | 2009 | | | % Change | |
Electric (in GWhs) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 3,124 | | | | 3,088 | | | | 1.2 | % | | | (0.7 | )% | | $ | 444 | | | $ | 429 | | | | 3.5 | % |
Small Commercial & Industrial | | | 1,958 | | | | 1,965 | | | | (0.4 | )% | | | (2.0 | )% | | | 233 | | | | 232 | | | | 0.4 | % |
Large Commercial & Industrial | | | 3,975 | | | | 3,878 | | | | 2.5 | % | | | 1.5 | % | | | 327 | | | | 312 | | | | 4.8 | % |
Public Authorities & Electric Railroads | | | 226 | | | | 228 | | | | (0.9 | )% | | | (0.3 | )% | | | 22 | | | | 22 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Retail | | | 9,283 | | | | 9,159 | | | | 1.4 | % | | | (0.0 | )% | | | 1,026 | | | | 995 | | | | 3.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | | | | | | | 61 | | | | 59 | | | | 3.4 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | | | | | | | | 1,087 | | | | 1,054 | | | | 3.1 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Gas (in mmcfs) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Sales | | | 19,730 | | | | 17,659 | | | | 11.7 | % | | | 0.7 | % | | | 205 | | | | 202 | | | | 1.5 | % |
Transportation and Other | | | 7,253 | | | | 7,078 | | | | 2.5 | % | | | 2.2 | % | | | 7 | | | | 10 | | | | (30.0 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Gas | | | 26,983 | | | | 24,737 | | | | 9.1 | % | | | 1.1 | % | | | 212 | | | | 212 | | | | 0.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Electric and Gas Revenues | | | | | | | | | | | | | | | | | | $ | 1,299 | | | $ | 1,266 | | | | 2.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | | | | | | | $ | 652 | | | $ | 532 | | | | 22.6 | % |
Fuel | | | | | | | | | | | | | | | | | | | 123 | | | | 126 | | | | (2.4 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Purchased Power and Fuel | | | | | | | | | | | | | | | | | | $ | 775 | | | $ | 658 | | | | 17.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % Change | |
Heating and Cooling Degree-Days | | 2010 | | | 2009 | | | Normal | | | From 2009 | | | From Normal | |
Heating Degree-Days | | | 1,686 | | | | 1,567 | | | | 1,634 | | | | 7.6 | % | | | 3.2 | % |
Cooling Degree-Days | | | 19 | | | | 10 | | | | 21 | | | | 90.0 | % | | | (9.5 | %) |
Twelve Months Ended December 31, 2010 and 2009
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Electric and Gas Deliveries | | | Revenue (in millions) | |
| | | 2010 | | | 2009 | | | % Change | | | Weather-
Normal
% Change | | | 2010 | | | 2009 | | | % Change | |
Electric (in GWhs) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Retail Deliveries and Sales (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 13,913 | | | | 12,893 | | | | 7.9 | % | | | 0.5 | % | | $ | 2,069 | | | $ | 1,859 | | | | 11.3 | % |
Small Commercial & Industrial | | | 8,503 | | | | 8,397 | | | | 1.3 | % | | | (1.9 | )% | | | 1,060 | | | | 1,034 | | | | 2.5 | % |
Large Commercial & Industrial | | | 16,372 | | | | 15,848 | | | | 3.3 | % | | | 0.8 | % | | | 1,362 | | | | 1,307 | | | | 4.2 | % |
Public Authorities & Electric Railroads | | | 925 | | | | 930 | | | | (0.5 | )% | | | (0.3 | )% | | | 89 | | | | 90 | | | | (1.1 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Retail | | | 39,713 | | | | 38,068 | | | | 4.3 | % | | | 0.1 | % | | | 4,580 | | | | 4,290 | | | | 6.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Revenue (b) | | | | | | | | | | | | | | | | | | | 255 | | | | 259 | | | | (1.5 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Electric Revenue | | | | | | | | | | | | | | | | | | | 4,835 | | | | 4,549 | | | | 6.3 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Gas (in mmcfs) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Retail Sales | | | 56,833 | | | | 57,103 | | | | (0.5 | )% | | | 0.9 | % | | | 656 | | | | 732 | | | | (10.4 | )% |
Transportation and Other | | | 30,911 | | | | 27,206 | | | | 13.6 | % | | | 10.8 | % | | | 28 | | | | 30 | | | | (6.7 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Gas | | | 87,744 | | | | 84,309 | | | | 4.1 | % | | | 4.1 | % | | | 684 | | | | 762 | | | | (10.2 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Electric and Gas Revenues | | | | | | | | | | | | | | | | | | $ | 5,519 | | | $ | 5,311 | | | | 3.9 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Power | | | | | | | | | | | | | | | | | | $ | 2,361 | | | $ | 2,274 | | | | 3.8 | % |
Fuel | | | | | | | | | | | | | | | | | | | 401 | | | | 472 | | | | (15.0 | )% |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Purchased Power and Fuel | | | | | | | | | | | | | | | | | | $ | 2,762 | | | $ | 2,746 | | | | 0.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | % Change | |
Heating and Cooling Degree-Days | | 2010 | | | 2009 | | | Normal | | | From 2009 | | | From Normal | |
Heating Degree-Days | | | 4,396 | | | | 4,534 | | | | 4,638 | | | | (3.0 | )% | | | (5.2 | )% |
Cooling Degree-Days | | | 1,817 | | | | 1,246 | | | | 1,292 | | | | 45.8 | % | | | 40.6 | % |
| | | | | | | | | | | | | | | | | | |
Number of Electric Customers | | 2010 | | | 2009 | | | Number of Gas Customers | | 2010 | | | 2009 | |
Residential | | | 1,411,643 | | | | 1,404,416 | | | Residential | | | 448,391 | | | | 444,923 | |
Small Commercial & Industrial | | | 156,865 | | | | 156,305 | | | Commercial & Industrial | | | 41,303 | | | | 40,991 | |
| | | | | | | | | | | | | | | | | | |
Large Commercial & Industrial | | | 3,071 | | | | 3,094 | | | Total Retail | | | 489,694 | | | | 485,914 | |
Public Authorities & Electric Railroads | | | 1,102 | | | | 1,085 | | | Transportation | | | 838 | | | | 778 | |
| | | | | | | | | | | | | | | | | | |
Total | | | 1,572,681 | | | | 1,564,900 | | | Total | | | 490,532 | | | | 486,692 | |
| | | | | | | | | | | | | | | | | | |
| (a) | Reflects delivery revenues and volumes from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed delivery charges and a CTC. For customers purchasing electricity from PECO, revenue should also reflects the cost of energy. |
| (b) | Other revenue includes transmission revenue from PJM and wholesale revenues. |
18
